Pertamina needs govt support to win LNG tender to China

Pertamina needs the government?s support to win the liquefied natural gas (LNG) tender to China as it has to compete with LNG producers from Australia, Malaysia, Russia, Qatar and Oman.

Speaking to reporters following a meeting with Vice President Hamzah Has on Tuesday, Pertamina?s president Baihaki Hakim said that Pertamina would formally submit its bid to supply the LNG on December 18, this year.

According to him, Pertamina should also be supported by government-to- government approach to be able to win the tender. ?Unlike with the previous buyers, selling LNG to China should be also supported by a political approach,? he added.

From the business aspect, Baihaki said, Pertamina was optimistic to win the tender given the competitive price to be offered by the state-owned oil and gas company. Although, Pertamina would not be able to win the whole LNG supply, Baihaki said he was optimistic the company would be able to supply at least 1.5 million tons per year.

Baihaki hoped the government?s plan to allow the opening of Bank of China representative office in Indonesia and the entry of a Chinese company in the country?s mining sector would help Pertamina to win the tender. (*)