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Indonesia Keen on Selling LPG to China
Indonesia is willing to supply liquefied petroleum gas (LPG) on a long-term basis to China's first LPG project in Guangdong Province, said a high-ranking official from the Indonesian government here recently.
According to Purnomo Ysgiantoro, the minister of Energy and Mineral Resources of Indonesia, Indonesia owns two LPG plants with a combined yearly production capacity of over 34.3 million tons. The Indonesia State Oil & Gas Mining Company (PERTAMINA) plans to construct a third LPG center in Tangguh district in eastern Indonesia and ship the Tangguh gas to south China's Guangdong Province. As the world's largest LPG provider, PERTAMINA operates 14 LPG trains in Indonesia.
Tangguh district has proven gas reserves of 14.4 trillion cubic feet and probable gas reserves of 3.9 trillion cubic feet. PERTAMINA hopes to bring on stream four new LPG trains in Tangguh and build up a combined production capacity of 14 million tons.
PERTAMINA believes that the low development costs in Tangguh and the short transportation distance between Tangguh and Guangdong will place the project at a very favorable position for beating other competitors in seeking the supply contract for the Guangdong LPG project.
The Guangdong LPG project, sponsored by the China National Offshore Oil Corporation, is to be situated at Chentoujiao in Dapeng Bay, Shenzhen. The project's first phase will incorporate a 3 million ton/year LPG receiving terminal and a 300 km natural gas trunk line sprawling across the Pearl River Delta. Operation of the terminal is scheduled for 2006.
In 2008, when the second phase of the Guangdong project is put into operation, its receiving capacity will be increased to 5 million tons and the pipeline grid length extended by over 180 km.
In 2000, the bilateral trade between China and Indonesia reached 7.5 billion US dollars, of which energy-related business accounted for 24 percent.
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