Indonesia, China to sign MoU on new LNG supplies
Monday, June 14 2004 - 04:38 AM WIB
Purnomo said the MoUs would be signed in Bali June 25, 2004. But he did not provide further detail.
A senior BP Migas official when contacted by Petromindo.Com said that the source of LNG for Shandong and Zhejiang would come from Tangguh LNG plant in Papua and from Bontang LNG plant in East Kalimantan.
Reports said that China Petrochemical Corp, (Sinopec Group), the nation's second-largest oil company, has beaten out rivals China National Offshore Oil Corp (CNOOC) and China National Petroleum Corp (CNPC) to win the rights to build an LNG terminal in Shandong Province.
The project, which is scheduled to start late 2006, will be able to handle up to 3 million tons of LNG annually once completed. Capacity could rise to 5 million tons a year, depending on market development. Reports said possible gas supplying sources to Shandong LNG terminal include Indonesia, Yemen, Sakhalin in Russia and Iran.
Sinopec has been talking with the National Iranian Gas Export Company (NIGEC) and the National Iranian Oil Company (NIOC) to import at least 5 million tons of LNG from Iran annually.
CNOOC, which had thus far dominated China?s LNG market, is also planning to build its third LNG terminal in Zhejiang Province. CNOOC will spend US 2 billion to build unloading terminal, power plant and pipeline network in the eastern province. The project may start as early as 2008.
The planned terminal in Zhejiang will be capable of importing at least 3 million tonnes of LNG annually. CNOOC will build a 3,000-megawatt power plant in Zhejiang's port city of Ningbo that will use the fuel.
Australia?s Gorgon LNG, which is operated by ChevronTexaco, is also eyeing to supply LNG to Zhejiang. Last October CNOOC signed agreement in which it would buy stake in Gorgon LNG. The agreement called for CNOOC to place a significant volume of Gorgon LNG for use in the growing Chinese market. CNOOC will also assist Gorgon to secure markets in China for a further designated amount of LNG. (godang)