Indonesia fails in Kogas LNG supply bid

Indonesian upstream oil, gas authority BP Migas said on Tuesday Indonesia failed in its bid to supply LNG to South Korean gas distributor Korea Gas Corp. (Kogas).

?We have received notification from Kogas that Indonesia is not included in the shortlist,? said Eddie Poerwanto, BP Migas deputy chairman in charge of gas marketing. ?Other producers are offering cheaper price than we do.?

Bloomberg on Tuesday reported that Kogas, the world ?s largest importer of LNG, had shortlisted five producers to supply up to 6 million tons per annum of LNG for 20 years starting 2008.

The report did not specify the names of the short-listed producers, but earlier a Kogas official said the company had received bids from Indonesia, Malaysia, Oman, Qatar, Brunei, Australia, Algeria, Iran and Russia.

Kogas expected to finalize initial agreement with successful two or three bidders by November this year.

KOGAS wants to buy as much as six million tons a year of LNG over 20 to 25 years starting in 2008, from more than one supplier. The contract will replace an accord with Indonesia?s PT Arun NGL, that ends in November 2007 and help KOGAS meet demand for LNG that is expected to rise 5 percent a year over the next 10 years, BP Plc. estimated in June.(godang)