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Indonesia ships Tangguh LNG to Fujian

Eric Watkins
OGJ Oil Diplomacy Editor

LOS ANGELES, July 16 -- Indonesian authorities said they expect to deliver a second cargo of LNG to China’s Fujian Province from the Tangguh LNG facility in Papua Barat.

“The second delivery will be to Fujian…after July 20,” said Evita H. Legowo, director general for oil and gas at the energy ministry, who added that the Fujian terminal is now ready to receive the gas.

Nico Kanter, BP Indonesia head of country, confirmed Evita’s announcement, saying that tanker Min Rong is currently in the process of loading at Tangguh and would depart for China's Fujian LNG terminal in the coming week.

Fujian was initially scheduled to receive the first cargo of LNG from Tangguh on July 6, but its LNG terminal reportedly was not operational at the time, and the cargo was delivered to South Korea instead—a point underscored by officials.

"The first shipment of LNG from Tangguh will not automatically go to Fujian in China,” said energy and mineral resources minister Purnomo Yusgiantoro in late June. “This is because the receiving terminal in Fujian is not ready yet.”

Purnomo said, “Consequently, the first shipment will be diverted to another destination and this could be South Korea."

Chinese officials dispute the Indonesian claim, saying that the Tangguh LNG project was the cause of the diverted shipment.

In late May, sources reported that China National Offshore Oil Corp. took delivery of the first LNG consignment from Indonesia at the Fujian terminal.

However, Chinese state media reported that the first cargo of LNG to reach Fujian came from Indonesia's Bontang LNG project because of a delay in the start up of operations at the Tangguh LNG project.

Tangguh is operated by BP Indonesia, with 37.16% stake, as a contractor to the Indonesian oil and gas regulator, BPMigas. Other partners include MI Berau BV 16.3%, CNOOC Ltd. 13.9%, Nippon Oil Exploration (Berau) Ltd. 12.23%, KG Berau/KG Wiriagar 10%, LNG Japan Corp. 7.35%, and Talisman 3.06%.

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