According to Yahoo!Asia News :
JAKARTA, April 30 (Reuters) – Korea Gas Corp. wants to buy LNG from the Tangguh project operated by BP in Indonesia’s Papua if a proposed expansion goes ahead, an official at the state-run South Korean firm said on Monday.
Tangguh, in Papua at the eastern end of the Indonesian archipelago, is due to produce 7.6 million tonnes of liquefied natural gas a year from two plants, or trains, with output expected from the fourth quarter of 2008.
The multi-billion dollar project has secured contracts to supply 2.6 million tonnes per year (tpy) to China over 25 years, 3.7 million tpy to the U.S. West Coast via Mexico and 1.1 million tpy to South Korea.
Indonesia’s government has asked Tangguh operator, BP, to study whether there is a market for a third Tangguh LNG train.
“We can import as much LNG as Indonesia can export. I think certainly with market price,” the KOGAS official, who declined to be named, told reporters.
The official, who is part of a South Korean business delegation in the country, said KOGAS also wanted to invest in upstream activities in Indonesia, in particular in the Papua area, the Natuna field in the South China Sea and other areas.
“We want to participate in the Indonesian bidding round for upstream activities and also participate in the new LNG project at Tangguh,” the offical said.
KOGAS, the world’s biggest LNG buyer, currently imports around 5 million tonnes of LNG from Indonesia annually.
KOGAS has said it plans to buy 25.4 million tonnes of LNG gas this year, compared to 24.6 tonnes in 2006.
For Indonesia, the world’s biggest supplier of the super-cooled gas, the Tangguh project will help offset declining output from other LNG facilities and provide much-needed revenue.
Indonesia, Asia Pacific’s only OPEC member, is far richer in gas than in oil.
- Well, Korea had already established their LNG importing facilities and already having a close watch to the Natuna Field in Indonesia…, Korea also states that they can import AS MUCH as Indonesia can export…. One word…High Demand….High Price for LNG.
So what’s next for Singapore? 80% of Singapore’s electricity generated from Natural Gas…and should we relies on this only source of fossil fuels from Indonesia and Malaysia…we might be in deep trouble if one day the respective countries have higher domestic demand or China, India, Korea, USA or even Japan decided to pay higher for the much needed clean fossil fuel…and jack up the cost? What happens then?
$1000 for your utilities bills? per month? per day? per hour? pay per use? black out? Think about it.
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