The Tangguh gas project in Papua, Indonesia will export it first shipment of LNG to China by the end of June.

The news came as Energy and Mineral Resources Minister Purnomo Yusgiantoro said recently that buyers in China had agreed to the delivery schedule.

$quot;We expect the first shipment of LNG from Tangguh can be delivered by the end of June,$quot; Purnomo reportedly told journalists.

The timing of the delivery is later than the government's initial target of April 2009, but Purnomo apparently saw no problem in the delay.

$quot;Buyers in China have agreed (with the schedule),$quot; he said.

Tangguh is a massive gas project located in the Bintuni Bay area of Papua, where total proven gas reserves amount to some 14.4 trillion cubic feet.

Operated by Europe's largest oil and gas company BP Plc., the Tangguh plant is expected to produce 7 million tons of LNG per annum in the first phase of production beginning this year.