Megawati offers LNG to Mexico

President Megawati Soekarnoputri has offered liquefied natural gas (LNG) to Mexico during a meeting with Mexican President Vicente Fox in Bangkok on Sunday, Kompas newspaper reported on Monday.

“Indonesia has offered to supply LNG to Mexico in that meeting,” Foreign Minister Hassan Wirayuda told reporters after the meeting.

Both Megawati and Fox were in Bangkok to attend the two-day Asia Pacific Economic Cooperation (APEC) forum meeting beginning Monday in the Thai capital.

Although Indonesia and Mexico had previously discussed the sale of LNG, the meeting between the two heads of states would yield better result, said Hassan.

Indonesia is planning to sell between five million to six million cubic feet per year to potentially huge Mexican market and nearby west coast of the USA.

Indonesian oil upstream oil and gas authority BP Migas has signed memorandum of understandings on LNg supply with US companies Marathon Oil and Sempra Eenergy, which plan to build LNG receiving terminal complex in Mexico.

President Fox, according to Hassan, will discuss Indonesia’s offer with his officials as the location of LNG installation in Mexico is still a controversy because the central government and the local government had differences over the site.

The leaders didn’t discuss about the competition from other countries, Hassan said.

But, Hassan confirmed that he had already met with his Mexican counterpart. Mexican foreign minister told Hassan that his country earlier planned to buy LNG from Bolivia.

But the gas problem has turned into a political issue in Bolivia and the incumbent Bolivian president was forced to resign following the violent riots which killed more than 80 people. (*)