Advance team to visit Fujian for Tangguh LNG renegotiation
Wednesday, February 6 2013 - 01:28 AM WIB
The government is preparing an advance team to soon fly to Fujian, China, to open the way for the process of price renegotiation of liquefied natural gas (LNG) export from the Tangguh plant in Papua, according to Vice Minister of Energy and Mineral Resources, Susilo Siswoutomo.
Susilo said that the team would be led by the SKK Migas, the upstream oil and gas authority.
?The advance team is currently making preparation, and hopefully in the next couple of weeks, they will be dispatched (to Fujian),? he told Petromindo.com Wednesday.
The government is struggling to get a better price for the Tangguh LNG exported to Fujian as the price of US$3.5 per mmbtu under the current contract is deemed too low. In comparison, the price of LNG in the domestic market has now reached $5-6 per mmbtu.
Editing by Reiner Simanjuntak