Papua to receive at least $1.1 billion from Tangguh LNG plant
Saturday, August 24 2002 - 04:38 AM WIB
Speaking to reporters during his brief visit to Jakarta, Salossa said that the plant which would be constructed as part of the development of the Tangguh massive gas fields would have two liquefaction trains with production capacity of 3.8 million tons a year.
The plant would be built to meet export commitment of about 2.5 million tons a year to China?s Fujian province and another 1.3 million tons to the Philippines.
The Tangguh LNG project, which is located in Papua, is now under preparation for construction. The project, which will absorb about $3 billion in investment is expected to start production by 2005.The project has proven gas deposit of about 14.4 trillion cubic feet.
BP Indonesia owns 50 percent stake in the project, with the other 16 percent by Mitsubishi, 12 percent by Nippon, 11 percent British Gas, 10 percent Kanematsu Corp, and the remaining one percent by Nissho Iwai. The project is developed under 70-30 percent production sharing contract in favor of the Indonesian government.
BP recently joined the auction to supply China?s province of Guandong about 3 million tons of LNG a year. The company, however, failed in the tender which was won by an Australian LNG producer.
Although BP Indonesia could not win the Guangdong tender, the oil and gas giant was, instead, granted as contract to supply Fujian, other province of China about 2.5 million tons a year for 20 years.
Salossa regretted statements made by local gas experts that the offer to supply the Fujian province was not economically feasible and the offer should therefore be rejected. "The offer is big enough. Although it is not as big as those for Guangdong province, such a deal will economically benefit Indonesia," the governor said.(*)