Pertamina, El Paso negotiating for Tangguh LNG exports to US

By the OGJ online staff

HOUSTON, Oct. 9 -- Indonesia's Pertamina is negotiating with El Paso Natural Gas Co. to supply liquefied natural gas from its proposed Tangguh plant in Orain Jaya province to the US.

The move would expand Indonesia's LNG exports from the eastern Asian market to the US, according to the Organization of Petroleum Exporting Countries's new service.

Pertamina and BP Indonesia PLCare developing the Tangguh LNG plant, with production expected to start within a couple years. Construction would begin on another train when an LNG sales contract is finalized.

El Paso plans to build three LNG receiving terminals in the US, including one in California or Baja California (OGJ Online, Mar. 9, 2001).

Pertamina and BP Indonesia also are seeking LNG contracts in China, which is expected to import 3 million tonnes/year of LNG beginning in 2005 at the Guangdong receiving terminal in southern China.

The $1.5 billion Tangguh LNG project is designed to produce 6 million tonnes/year from two trains, drawing on 14 tcf from the offshore Irian Jaya fields (OGJ Online, July 11, 2001).

Pertamina also operates LNG plants at Arun in northern Sumatra and Bontang in East Kalimantan.

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