By Wilda Asmarini
JAKARTA, April 14 (Reuters) - BP said it would betough to proceed with financing for a planned third LNG train atits Tangguh project in West Papua, Indonesia if it is unable tofind buyers for the remaining 1.3 million tonnes of annualoutput from the production plant.
Prospects for new liquefied natural gas (LNG) developmentsglobally have been hammered by the fallout from a 50-percentdrop in oil prices since last June. The situation in Asia is setto get worse as two LNG projects in Australia come onstream thisyear, crowding an already amply supplied market.
"There is still 1.3 million tonnes per year that has not yet(been sold)," said Dharmawan Samsu, head of country at BPIndonesia, noting that so far the firm has only found buyers for2.5 million tonnes of expected output from Train 3.
Without new buyers for the remainder it would be "difficultto proceed" with financing the third train, which is currentlyexpected to be completed by 2020, he said on Tuesday. (Additional reporting by Fergus Jensen; Editing by HimaniSarkar)
BP (BP.)
