Tangguh LNG project must start in 2004: Purnomo
Thursday, July 3 2003 - 02:52 AM WIB
?Until now, the statement given by BP Indonesia to the government is that they are ready to develop the project. So it has nothing to do with (securing the) market (for the product). The government has also asked the company to develop the project on time. In addition, the construction can be done gradually,? Purnomo was quoted by the leading Kompas daily on Wednesday.
BP Indonesia, the local unit of Anglo-American energy giant BP Plc, is the operator of the Tangguh LNG project.
Purnomo was responding to earlier remarks made by Rachmat Sudibjo, chairman of BPMIGAS, the country?s top oil and gas regulator, who said that the LNG project would have to be delayed if the operator fails to secure sufficient number of buyers by the end of this year.
The Tangguh LNG project is designed to produce some 7 million metric tons of LNG per year by 2007. But so far, the project has only secured a 2.6 million ton per year supply contract from China?s Fujian province.
Purnomo said that there have been various efforts taken to win other contracts. He said that there was some positive signs coming from Japan. He added that Tangguh is awaiting for the completion of tender process in Taiwan and South Korea to supply LNG at 1.5 million tons, and 1.5-2 million tons per year, respectively.
He also said that talks are still in progress with the Philippines and Mexico. (*)