Indonesia eyeing more LNG exports to China

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said on Friday Indonesia is eyeing to sell more liquefied natural gas (LNG) to China and talks had been underway to discuss the possibility with Chinese authority.

Purnomo said Indonesia is trying to sell up to 5 million tons of LNG to Fujian province, almost doubling the 2.6 million tons per annum contract Indonesia had already secured. Purnomo said delegate from Fujian would come to Jakarta on December to further discuss the possibility. Under the contract signed last year, Fujian will get LNG supplies from the Tangguh LNG project which is being developed by a consortium led by Anglo-American firm BP PLC in the Bird?s Head area of Papua.

Purnomo also said Indonesia is also trying to sell LNG to Shandong province. He, however, did not reveal the volume of LNG Indonesia is trying to sell to the province. An industry source said that a marketing team which represent Tangguh LNG had held preliminary meetings with Shandong province official.

Another Chinese market Indonesia trying to tap is Jiangshu province with the volume of 5 million tons per annum. Purnomo said. Government had given principle agreement for Hong Kong-based company Pacific Oil & Gas, which is proposing to build an LNG train in Bontang, East Kalimantan. Purnomo said the Jiangshu LNG deal might be signed as early as next year.

Indonesia is desperately trying to find market for its LNG, which had been facing increasing competition from new producers. (alex/godang)