Minister confirms Indonesia shortlisted for China LNG deal

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said on Saturday that Indonesia, along with Australia and Qatar, had been shortlisted for liquefied natural gas (LNG) supply deal to China?s Guang Dong province.

?Indonesia will take necessary steps to approach our China counterpart as winning this LNG deal is very important to Indonesia,? said Purnomo via phone interview without further elaborating.

China's Guangdong terminal is among few Asian LNG sales opportunities since the 1997 financial crisis set back economic expansion. Its importance is underscored by Indonesia's decision to send Purnomo Yusgiantoro and four other ministers to Beijing last year to win sales for the world's biggest LNG producer.

Indonesia is hoping to secure enough sales to warrant a go- ahead on BP's $2 billion Tangguh gas liquefaction project in the easternmost Papua province. BP will also own 30 percent of the terminal at Shenzhen in Guangdong, which is scheduled to be completed by the end of 2005.

The Guangdong LNG supply contract offers potential sales totaling 3 million tons of LNG annually, beginning in 2005.

A deal with China would pave the way for the construction of the LNG plant in Tangguh, which Pertamina would jointly develop with BP. (godang)