Sign up | Log in



Indonesia’s LNG project coming on stream early 2009

Related Stories

October 18, 2008
US firms awarded exploration rights on 22 blocks in Indonesia

October 18, 2008
Korea seeking extension  of LNG contract with Indonesia

September 10, 2008
Indonesia leaves oil cartel

September 9, 2008
Indonesia oil output seen at 405,000 bpd in 2008

August 29, 2008
New oil, gas basins found in E Indonesia


October 21, 2008

Indonesia’s LNG project coming on stream early 2009
Indonesia's $5 billion Tangguh liquefied natural gas (LNG) project, due to be commissioned before year-end, will be on stream early next year, Reuters quoted Minister of Energy and Mineral Resources Purnomo Yusgiantoro as saying Tuesday.

"It will be on stream in early 2009 and the new sales contracts will start late in the first quarter," Yusgiantoro said on the sidelines of an LNG conference organised by Conference Connection.

He did not say whether this meant the formal commissioning of the 7.6 million tonne per year Tannguh project, operated by BP, would be delayed from the end of this year.

Indonesia, until recent years the world's biggest LNG exporter, is counting on Tannguh to help offset declining production at older projects, boosting export earnings.

Earlier this year, as oil prices surged to record highs above $147 a barrel, officials suggested that Indonesia might delay deliveries from the project to China and South Korea in order to negotiate higher prices.

Indonesia had closed the Tangguh LNG deals some five years ago at the equivalent of $25 a barrel, later revised up to $38 a barrel, but still far from oil's July peak at over $147, when prices of the gas chilled to liquid form also surged.

In March, Indonesia said it would ask China National Offshore Oil Corp (CNOOC) to increase its LNG price from Tangguh again, but there has been no agreement yet and Yusgiantoro said there was no hard deadline for the discussions.

"We have no exact target, what really want is the extension of the contract but it takes two to tango," Yusgiantoro said. Asked whether they would halt exports if the contracts hadn't been renegotiated, he said: "The average price from the project to South Korea, the U.S. and China is still pretty good at about $8 per mmBtu fob, we have some low prices, some high prices."

Tangguh has contracts to supply 3.5 million tonnes a year to Sempra Energy, 2.6 million tonnes to China's CNOOC and 1.1 million tonnes to South Korean buyers K-Power and POSCO.

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand