Indonesia offers lowest LNG price to China: Source

Indonesia has offered lowest priced compared to Qatar and Australia in an effort to win 3.5 million ton per annum liquefied natural gas (LNG) supply starting late 2005 to China?s industrial province of Guang Dong, a source tipped Petromindo.Com Thursday.

Indonesia will supply the LNG from Tangguh gas field in Papua province.

?According to the criteria set by tender committee, price is weighted 55 percent, country risk 35 percent and 10 percent is attributed to supplier?s flexibility in changing the terms,? said the source.

The source said Indonesia has the fair chance to win the supply contract as state oil and gas firm Pertamina and Anglo-American energy giant BP that operates Tangguh had also offered flexible terms.

The source did not say how Indonesia was rated in country risk.

However, the source warned that geopolitical considerations would also play roles in picking the winner.

?I think the committee will take their time to select the winner and my estimate is, they would not announced the winner until next month,? said the source.

The three countries had been striving to win LNG supply bid by sending high-ranking delegations to China.(alex)