Indonesia to give final push to win SK-POSCO LNG supply contract
Saturday, July 12 2003 - 01:58 AM WIB
?Indonesian delegation will hold talks to enhance further cooperation in energy sector. The talk will include meeting with top executives of SK Corp. and POSCO,? said Purnomo in an interview late Friday.
POSCO and SK Corp. have opened tender to supply a total of 1.1 million tons of LNG annually starting 2005. Tangguh LNG, which is to be developed by BP Plc, and Petronas? Malaysia Tiga LNG had been declared preferred bidder with winner announcement expected next week. POSCO is the world's second largest steel maker, while SK Corp. is South Korea's largest oil refiner.
Tangguh has been scrambling to find buyers for its LNG to secure adequate volume to justify the construction of the plant, which is scheduled to commence early next year. Tangguh has thus far bagged the 2.7 MTPA supply contract to the Chinese province of Fujian and is searching to double the contract volume. Tangguh was recently defeated by Qatar?s RasGas in the 1.8 MTPA supply tender to Taiwan?s TaiPower.
An industry analyst contacted by Petromindo.Com said that Tangguh stand a good chance to win the contract as it offered lower price and better terms and condition compared with Malaysia Tiga?s offer.
?Winning the SK-POSCO supply contract will be vital for Tangguh, as it would give more justification for financial institutions to fund the project development. That?s why Indonesia is pushing so hard to win the contract by sending Purnomo to South Korea at the time when the winner is scheduled to be announced,? said the analyst. (godang)