Indonesia loses in tender to sell LNG to China: Report

Indonesia has been reported to have lost in its bid to sell liquefied natural gas (LNG) to China but the report does not unveil the winner of the multi-billion dollar tender.

Neraca reported on Wednesday that a senior official of state owned oil and gas company Pertamina had received an unofficial report from China that Indonesia had failed to win the tender due to the country?s high political risk and the uncompetitive price.

Although China had yet to formally announce the winner of the tender, many analysts believed in the report.

When asked to confirm about the report, senior manager of Pertamina?s production sharing management, Abubakar Sidick said that the state oil and gas company had yet not been informed about the winner of the tender.

"China initially planned to announce the winner in June. But up to now, the announcement has not been made," he was quoted as saying.

Indonesia through BP Indonesia is competing with LNG producers from Australia and Qatar to win a contract worth Rp 12 trillion (US$1=Rp 8,500) to supply LNG to China.

The rumor was also denied by BP Indonesia?s vice president for government and public affair, Satya W. Yudha. "We have a better chance to win the tender," he said.

According to him, besides the distance between Indonesia and China, is much closer than those from Australia and Qatar, the price offered by BP Indonesia is also much more competitive. (*)