Indonesia optimistic on China LNG supply bid

Minister of Energy and Mineral Resources Minister Purnomo Yusgiantoro said he is confident the Tangguh project will succeed in a bid for a $10 billion liquefied natural gas supply contract to southern China, China's Business Weekly reported Tuesday.

"Indonesia is very optimistic about the bid," Purnomo said speaking after a meeting by Indonesian President Megawati Sukarnoputri with China's leadership during an official state visit. "Indonesia has always been trying to do its best to win the contract."

In March 2001, a consortium including Indonesia's state-run oil company Pertamina, which holds a half stake in the Tangguh gas field, won the right to form a group tasked with building a $600 million gas receival terminal in Guangdong province in southern China.

The final round of bidding to determine which consortium will supply LNG through the Guangdong terminal will be begin April 19, the report said.

BP PLC (BP) also has a 50% stake in the Tangguh project and is part of the consortium that has taken a 30% stake in the terminal project. China's CNOOC Ltd. (CEO) holds a controlling 33% interest with the remainder split between several Guangdong and Hong Kong companies.

BP Indonesia Vice President Satya Widya Yudha also was upbeat on Tangguh's prospects. "It is our strong belief that the Tangguh project won't fail," he said. (*)