Indonesia optimistic to win China's LNG tender
Monday, July 10 2000 - 03:45 AM WIB
Indonesia will participate in a tender to supply China with 3 million tons of liquefied natural gas (LNG) from the Tangguh gas field in Irian Jaya, a senior government official has said.
The director general for oil and natural gas at the Ministry of Mines and Energy, Rachmat Sudibyo, said Indonesia would compete along with Malaysia, Australia and Qatar in the LNG tender, which he expects to take place in August.
"The Chinese government told us that they are currently preparing the tender documents, which they will have completed very soon, probably by next month," Rachmat told The Jakarta Post over the weekend.
Indonesia has long been lobbying China in a bid to find a market for the six million tons of gas the Tangguh project is estimated to produce annually.
Construction of the Tangguh project, worth US$1.5 billion, is pending the signing of a contract, which Indonesia is expecting to happen some time this year.
"We have a good chance of winning the tender," Rachmat said, adding that LNG buyers usually sign long-term contracts of 20 years.
He said Indonesia is known as the world's largest LNG exporter with a good track record for reliability.
Indonesia's LNG is also more competitive in price, because compared to its competitor, the country enjoys a shorter distance for transporting gas to China, he added.
Rachmat was among the Indonesian delegation led by Minister of Mines and Energy Susilo Bambang Yudhoyono which made a visit to China for several days until Friday last week to market the Tangguh LNG. (*)