INDONESIA expected to sign a lucrative liquefied natural gas deal with China’s oil major China National Offshore Oil Corp. (CNOOC) to supply a proposed terminal in Fujian later this month, a senior official said yesterday.

　　“We expect to sign the agreement to supply LNG (liquefied natural gas) to Fujian Sept. 26,” Rahmat Sudibyo, head of Indonesian oil watchdog Balak, told reporters.

　　“According to a report from negotiators, the majority of issues have been agreed in principle,” he said.

　　Indonesia’s Mines and Energy Minister Purnomo Yusgiantoro said last month British Petroleum (BP) would supply gas to the proposed terminal from its massive Tangguh field in Papua.

　　China’s State media has said CNOOC, parent of Hong Kong and New York-listed CNOOC Ltd., had awarded the supply contract to BP, although a CNOOC official has said the deal had yet to be finalized.

　　An official from State oil and gas giant Pertamina said yesterday the agreement would likely be for 25 years and involve the supply of 2.5 million tonnes of LNG per year to China.

　　“An open option is still available to add supplies in the future,” said the official who declined to be named.

　　Separately, Pertamina’s President Director Baihaki Hakim said the company had also been approached by several Japanese importers inquiring about increased LNG supplies. Japan is the world’s largest LNG importer.

　　“I will go to Osaka this week with the Mines and Energy Minister to attend the OPEC meeting and I will use this opportunity to contact those Japanese importers,” he told reporters.

　　OPEC ministers from the cartel are due to meet Thursday to decide output policy for the fourth quarter.

　　Indonesia, Asia’s only OPEC member, is the biggest LNG exporter in the world with more than 23 million tonnes going to Japan, South Korea and Taiwan.

　　Tokyo Electric Power, Japan’s largest power utility, said last week it’s LNG demand was likely to rise this current business year due to the closure of nuclear reactors for checks. Tokyo Gas has also said it expected to boost imports of LNG.

　　Hakim also said Pertamina was looking into building another LNG plan in East Kalimantan and hoped it would come onstream in 2005.

　　“Pertamina plans to build a ninth LNG plant with a capacity of around 3 million tonnes per year in Bontang. We estimate it will cost around US$600 million,” he said without elaborating.

　　(SD-Agencies)