Purnomo says recent lobbying to China over LNG contract not a failure

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said that the recent government lobbying effort to China in a bid to help the state-owned oil and gas firm Pertamina to win a contract to supply LNG (liquefied natural gas) to the country had been positive.

He was quoted by the Tempo daily on Thursday as saying that in addition to the LNG prospects, the two governments had reached several economic cooperation agreements.

But a source of Tempo said that the lobbying effort had been a failure because the government team, which was led by businessman Taufik Kiemas, the husband of President Megawati Soekarnoputri, talked to the wrong institution, which had not authority in making decision over the China LNG contract.

Indonesia is competing with other LNG suppliers from six different countries to win the contract to supply LNG to China?s Guangdong province, which needs around 3 million tons of LNG per year.

Five ministers including Purnomo in December visited China and held talks with China top officials including Premier Zhu Rongji as part of government-to-government lobby to win the LNG contract.

The Chinese authority is expected to announce the winning bidder in June this year.(*)