31 Mar 2009

LNG delivery from Papua may be delayed

10:21 am on 31 March 2009

The first delivery of liquefied natural gas or LNG from the BP-led Tangguh project in Indonesia's Papua may be delayed.

Last year, Indonesian officials announced the 5 billion US dollar Tangguh project would be delayed until the second quarter of this year, beyond an earlier target of May.

The head of the country's oil watchdog says they may not make the first delivery of LNG from Tangguh in May but says one cargo may be sent to Fujian as a test.

It says Indonesia had sent a team to China to check whether the receiving LNG terminal in Fujian was ready.

It says Indonesia will not declare that Tangguh was on stream commercially until the terminal in China is ready.