Talks over LNG supply for Fujian expected to be concluded late September

The Indonesian government expects to conclude by the end of this month its negotiations with China?s Fujian provincial government to supply liquefied natural gas (LNG) to the region under a long-term contract, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said on Tuesday.

?Our team is now there in Beijing to negotiate contract terms and condition. We expect that the two sides will reach an agreement by the end of this month,? Purnomo told reporters on the sidelines of a parliamentary hearing.

Purnomo said the terms and condition included price, transportation, tax, insurance, time schedule and volume.

If the two sides have reached agreement on terms and condition, they could sign a memorandum of understanding (MoU) which would lead to contract signing, Purnomo explained.

Early last month, China awarded Indonesia a contract to supply 2.5 million metric tons of per year of LNG to Fujian under a long-term contract, after Indonesia failed to win a hotly contested deal to supply 3 million LNG to Guangdong.

Meanwhile, a source told Petromindo.Com on Tuesday talks in Beijing between the Indonesian team and Chinese parties dealing with the LNG contract had gone smoothly so far. (godang)