Indonesia eyes LNG export to Taiwan
Friday, November 10 2000 - 04:00 AM WIB
State oil and gas company Pertamina said on Thursday that it planned to offer liquefied natural gas (LNG) to Taiwan from the Bontang LNG plant in East Kalimantan and the Tangguh plant in Irian Jaya.
Pertamina president Baihaki Hakim said that Pertamina was expecting to join a tender for the supply of between 1.5 million tons and 3 million tons of LNG to Taiwan.
"There is a chance for us. I received information that the Taiwanese government wants at least two participants for the tender," Baihaki told reporters on the sidelines of a meeting with the House of Representatives' Commission VIII on energy and mining affairs.
In his written response to the Commission's questions, Baihaki said that the LNG would supply Taiwan's' Tatan Power Plant, which was being developed by Taipower.
Taipower, he said, was now seeking a supplier of natural gas.
He said that bidders for the supply of LNG had to commit themselves to the construction of an LNG terminal in the northern part of Taiwan.
Gas company Tung-Ting Gas was the sole bidder for the project, thus causing Taipower to extend the bidding period to this month.
He said that gas company Chinese Power Company (CPC) had joined the tender and CPC was now forming a consortium for the project.
"In this regard, BP as the operator of the Tangguh project will participate in the consortium as a foreign partner, with the LNG supply coming from Tangguh," he said.
To land a contract, he said, Pertamina could only hope that its LNG carried lower prices than the competitors.
Offering a competitive price was difficult because the Tangguh LNG plant had not even been build yet.
"Without trying to be a pessimist, I must admit that the competition will be tough," he stressed.
But aside from Tangguh, he said, Pertamina would also offer Taipower LNG supplies from the Bontang plant, which was already operating.
"This way, there is still a chance for Indonesia to supply its LNG to Taiwan," he said.
Pertamina initially expected to have a LNG contract by the end of this year to kick off the construction of the Tangguh project. (*)