Tangguh LNG project to enter construction in 2002

The Tangguh LNG (liquefied natural gas) project in Wiriagar, West Papua province, is expected to already enter construction period in 2002, according to project manager R. Inoenoe B.T.

Inoenoe said that the environmental impact assessment of the project was nearly completed.

"The people of the Irian Jaya (West Papua) also want this project to be realized immediately," he said.

Speaking to reporters on the sidelines of a BP Amoco new logo launching, Inoenoe said that although the market for the LNG product was not yet obtained the project would continue as scheduled.

He said that some 25 square km of land had been freed recently for the development of plant facility, infrastructure and airfield. He said that some 8 LNG trains could be developed in the area with a capacity of 3 million tons of LNG in each train.

"In the first stage we may develop only two trains, but we'll see, maybe it will be gradual. We expect there is a vast market," he said.

Inoenoe said that the total investment of the project could not yet be decided because it would also depend on the price for the LNG.

"We have not talked about that. The program is now looking for the market first, and then after that we'll seek for lenders or financiers. And then we can make the investment calculation," he said.

Several countries have been offered to buy the Tangguh LNG product including India and China, although the latter recently indicated that it would not purchase the gas. The LNG is also being offered to Japan, Taiwan, and Thailand. (*)