BP, Tokyo Gas in LNG supply talks: BPMIGAS

Anglo-American oil, gas firm BP Plc and Tokyo Gas are currently in talks to divert some of the LNG volume that would have been shipped from the Tangguh LNG project to Sempra Energy?s receiving terminal in Mexico, a BPMIGAS official said.

BPMIGAS Marketing Division Head Fathor Rahman told Petromindo.Com that Tokyo Gas might get 500,000 tonnes per annum of Tangguh diversion.

Fathor said Tokyo Gas might purchase the LNG above US$10 per MMBTU.

BP-operated Tangguh LNG is contracted to supply 3.7 million tonnes of LNG starting 2009 to Sempra?s receiving terminal in Costa Azul, Mexico. Under the contract, Sempra would pay the Tangguh LNG based on Southern California (Socal) index price. BP could divert half of the volume of LNG by paying $1 per MMBTU premium to Sempra.

Earlier, a BPMIGAS senior official also said that Kogas would offtake 1 MTPA of Tangguh diversion at US$20 per MMBTU under US$100 per barrel crude price assumption. (godang)