BPMIGAS says LNG price from Tangguh to Chubu matches Western Buyers? price

Upstream oil, gas authority BPMIGAS said LNG sales price from BP-operated Tangguh LNG plant to Japan?s Chubu Electric Power which GSA had been signed recently matched with LNG price sold by Bontang LNG to Japanese customers popularly known as Western Buyers.

Chairman R. Priyono said that the price to Chubu is the best price Tangguh can fetch. He did not give further detail.

Tangguh LNG has recently signed final deal to supply a total of 2 million tonnes of LNG to Japan?s Chubu Electric Power.

BPMIGAS Spokesperson Amir Hamzah told Petromindo.Com that under the Gas Supply Agreement (GSA) Tangguh will supply Chubu 250,000 tonnes per annum (TPA) of LNG in 2011-12 and 500,000 TPA in 2013-15.

Chubu will buy a portion of LNG shipment that would originally be shipped to Sempra in North America but could be diverted to other market to search for better price.

Sempra has a 20-year contract to lift 3.6 million TPA of LNG from Tangguh project. BP has the right to divert half its volumes to other destination by paying fee to Sempra.(bernard)