30 Jun 2009

Giant LNG project in West Papua will delivers its first shipment next month

10:31 am on 30 June 2009

The giant project in Tangguh, West Papua, will deliver its first liquefied natural gas shipment next month, with the destination likely to be South Korea, not China as initially planned.

The Jakarta post reports the Energy and Mineral Resources Minister Purnomo Yusgiantoro as saying the first shipment of LNG from Tangguh will not automatically go to Fujian in China.

He says this is because the receiving terminal in Fujian is not ready yet.

Consequently, the first shipment will be diverted to another destination, which could be South Korea.

The minister added the government had managed to renegotiate the price, with both Chinese and South Korean buyers agreeing to revise the price upward.