Indonesia may carry out the first delivery of liquefied natural gas (LNG) from Tangguh project in Papua to China's Fujian province in June, Indonesia's oil watchdog BP Migas said here Monday.

Indonesia is expected to deliver 2.6 million tons of LNG annually from the Tangguh project to China's Fujian province for 25 years starting this year, it said.

The shipment of the gas from Tangguh field to Fujian was initially planned in May, but due to a technical problem the delivery was delayed, the head of BP Migas Raden Priyono said.

"Hopefully the shipment can start in June," he told reporters.

However, the shipment of gas to Fujian was still to be done in May with the supply from Bontang gas field in East Kalimantan as a test.

Indonesia, the world's third largest LNG exporter after Qatar and Malaysia, is counting on Tangguh to help meet raising gas demand amid the dwindling production at older wells.

Tangguh field will produce 7.6 million tons a year and has contracts with many companies.

(Xinhua News Agency March 31, 2009)