Indonesian delegation to visit China Monday, negotiate LNG supply to Fujian

An Indonesian delegation will visit China on Monday to discuss with its officials about liquefied natural gas (LNG) supply to China?s Fujian province, BP Indonesia vice president Satya W. Yudha told Petromindo.Com on Wednesday.

?Our delegation will discuss with them about LNG supply to Fujian," Satya said. He declined to mention the names of delegation members.

Meanwhile, a source told Petromindo.Com, President Megawati Sukarnoputri would soon send a letter to Chinese Prime Minister Zhu Rongzie to formally accept the contract to supply Fujian province in southern China with 2.5 million tons of LNG over 20 years starting late 2005 or early 2006.

Zhu Rongzie recently sent a letter to Megawati telling her that China had awarded Indonesia the contract to supply LNG to Fujian. In the same letter, the Chinese official revealed that they had awarded Australia the 20-year contract to supply 3 million tons of LNG per year to Guangdong starting 2005 or early 2006. Australia, Indonesia and Qatar had been shortlisted in a tender for a 20-year contract to supply LNG to Guangdong.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said Indonesia would start delivering the 2.5 million tons of LNG to Fujian in 2006 or early 2007.

LNG for Fujian will come from BP Indonesia?s gas field in Tangguh, Papua province. (godang)