BPMIGAS upbeat on talks with Sempra over LNG diversion

By Godang Sitompul

Upstream authority BPMIGAS Vice Chairman Hardiono said he is optimistic that the talks with Sempra Energy over Tangguh LNG diversion will bring fruitful results.

The BPMIGAS team, lead by Hardiono, arrived in the US last Sunday and began the discussion over LNG diversion with executives of Sempra since Monday.

?The result was positive. The discussion was done in an opened atmosphere,? Hardiono told Petromindo.com. Hardiono however declined to provide further details over the talks.

Earlier, he said BPMIGAS was seeking to divert up to 1.4 million tons per annum (mtpa) of LNG, including to domestic buyers.

State electricity company PT PLN and gas distributor firm PT Perusahaan Gas Negara Tbk (PGN) earlier had expressed interest to secure gas from the Tangguh LNG project which is operated by BP.

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.

Tangguh LNG has long-term contract to sell 3.7 mtpa of LNG to Sempra.

Editing by Roffie Kurniawan