Indonesian officials have approved Chevron Corporation's proposal to build offshore natural gas fields near East Kalimantan (Borneo Island). Chevron is expected to invest $6 billion to develop this project, which would help to increase Indonesia's production of natural gas.
In addition, Indonesia is also in talks with Inpex Holdings, a Japanese firm, to build the world's first offshore liquified natural gas (LNG) terminal in the Timor Sea, near Australia. This proposed terminal is expected to produce up to 5 million tonnes of LNG per year.
Indonesia is the world's second-largest exporter of LNG after Quatar, and has been struggling to keep up with global demand after diverting its LNG production to feed its domestic market.
Reuters, 4 Sept 2008, Indonesia approves Chevron gas field plans off E.Kalimantan http://www.reuters.com/article/marketsNews/idUSJAK10935320080904
Oil and Gas Journal, 4 Sept 2008, Indonesia, Inpex hold talks on LNG terminal construction,http://www.ogj.com/display_article/338776/7/ONART/none/Trasp/1/Indonesia...
Xinhua, 5 Sept 2008, Chevron gets approval to develop 5 gas fields in E Indonesia http://news.xinhuanet.com/english/2008-09/05/content_9799911.htm