Indonesia to earn US$8.2 billion from Fujian LNG sales

Indonesia expects to earn about US$8.2 billion from the sales of liquefied natural gas (LNG) to China?s Fujian province under the 20-year contract now being negotiated between the two countries? officials, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said as reported by Bisnis Indonesia daily on Thursday.

The minister said based on the price earlier offered to China?s province of Guangdong, the contract value of LNG exports to Fujian could reach US$8.2 billion and the value could be higher if China accepted the term and condition offered by Indonesia

"Hopefully memorandum of understanding on the sale of LNG could be signed in Jakarta later this month," he said, adding that besides prices, the negotiation team also discussed the transportation cost.

China offered to buy about 2.5 million tons of LNG a year from Indonesia under a 20-year contract to feed a major power plant in Fujian province. Indonesia, through BP Indonesia, actually bid a 25-year contract to supply about 3 million tons of LNG a year to another Chinese province, Guangdong but the company was defeated by an Australian company in the tender. China instead gives Indonesia a contract to supply the Fujian province. (*)