BPMIGAS Chairman discloses Sempra LNG diversion deal

By Godang Sitompul

Chairman of upstream authority BPMIGAS R. Priyono said that based on recent talks with Sempra Energy, all parties concerned have agreed that about 80 percent of contracted LNG to Sempra will be diverted to Indonesia domestic market.

?Sempra agreed that they will only receive 6 cargoes. About 80 percent of contracted LNG from Tangguh to Sempra will be diverted,? R. Priyono told reporters.

According to Priyono, the price of the Tangguh LNG diverted to domestic market follows international market price.

Tangguh LNG has long-term contract to sell 3.7 mtpa of LNG to Sempra. Under the original contract, Tangguh LNG was allowed to divert up to 50 percent of the annual volume by paying fee of US$1/mmbtu to Sempra.

State electricity company PT PLN and gas distributor firm PT Perusahaan Gas Negara Tbk (PGN) earlier had expressed interest to absorb the diverted gas from Tangguh LNG.

Editing by Roffie Kurniawan