RI seeks to increase LNG sales to China: Report
Wednesday, March 24 2004 - 12:55 AM WIB
The official told Dow Jones Newswires that Purnomo is scheduled to meet with one of China's vice premiers and the chairman of the National Development and Reform Commission on Friday before departing Saturday for Vienna to attend a meeting of the Organization of Petroleum Exporting Countries (OPEC).
Indonesia has been trying to increase gas sales to China, as the current contract to sell 2.6 million metric tons of LNG a year from 2007 to Fujian province from BP PLC's (BP) Tangguh project in Indonesia's West Papua province isn't economical enough to support the development of the project.
Purnomo has said that he hopes Indonesia can increase LNG sales to Fujian to 5 million tons a year, while the country is also looking at Shandong province as a prospective market.
Late last month, a delegation from Shandong visited Jakarta, seeking to buy LNG from the Tangguh field.
The ministry official said the government intends to quickly follow up on Shandong's request, as officials from the province are also approaching Russia for the planned gas purchase.
An increasing global supply of LNG is making it hard for Indonesia, one of the world's largest LNG producers, to find buyers, while new projects such as Tangguh and Donggi are expected to come on stream in the next 10 years.
Indonesia is also trying to sell LNG to the U.S. West Coast and Mexico.
During his visit to China, Purnomo is also expected to discuss the possibilities for Chinese electricity companies to build power plants in Indonesia to help overcome electricity shortages in the country. (*)