Indonesia has yet received invitation to S. Korea LNG bid: Pertamina

State oil and gas company Pertamina said it had yet received formal invitation to bid to supply 1.1 million tons per year of liquefied natural gas (LNG) to South Korea?s steel maker POSCO and oil refiner SK Corp., but hinted that invitation will be offered when Pertamina president Baihaki Hakim visits South Korea next week.

?Pertamina delegation headed by Baihaki Hakim is scheduled to meet with POSCO next week, and yes, Indonesia is eager to participate in the bid,? said Pertamina downstream director Muchsin Bahar over phone interview late Wednesday.

POSCO and SK had sent invitation to several LNG producers, including Austtralia?s North West Shelf to bid for 20 years starting 2005. The LNG contracts will make POSCO and SK Corp the first private companies to import LNG into South Korea, the world's second-largest importer after Japan.

Muchsin hinted that Indonesia would most likely source supply from Bontang, East Kalimantan.

?If Indonesia were able to win the contract, it would be a justification to commence the construction of Bontang?s ninth LNG train, Train I,? said Muchsin. Muchsin was optimistic with 1.1 million tons per annum contract, Train I could be constructed in time to supply LNG in 2005.

Development of Bontang?s ninth train which will give extra capacity of 3.5 million tons per year had been delayed for several years due inability to get new LNG supply contract.

South Korea is currently importing 16.9 million tons of LNG annually under trem contract with LNG annually under long-term supply contracts with Indonesia, Malaysia, Oman, Brunei and Qatar. South Korean LNG demand is expected to reach about 20 million tons in 2005. (godang)