China�s mnc energy in Indonesia case study: Cnooc In Tangguh-Fujian LNG project (2009-2012)

The increasing of gas demand in China is an implication of China�s policy on promoting natural gas use. This policy has objective in order to improve energy diversification, energy efficiency, and as a solution to environmental problems. With this condition, China needed to import gas from foreign countries to supply gas demand due to lack of gas resources energy in China, particularly in the coastal region. Indonesia is one of countries which determined by China to supply gas demand in China. The gas cooperation between China and Indonesia is started in convening bidding for Guangdong LNG terminal supply in November 2001 which is held in China. It is the first time for China entered global gas market. China decided Indonesia as a winner of a consolation prize with 2.6mtpa for 25 years of LNG to Fujian LNG terminal. With this cooperation, this research explained factors that influenced China�s policy to import gas from foreign countries and determined Indonesia as a supplier LNG for Fujian LNG terminal in 2002. This research used framework or concept of national interest, foreign policy, internal and external factors, and resource diplomacy. Based on analysis, this research has resulted two internal factors and three external factors that influenced China�s policy on importing gas from Indonesia. Two internal factors are the rising of China�s economic and gas demand in China�s coastal region. Three external factors are Indonesia gas supply, Indonesia gas price, and the ability to transfer gas to Chin