Government to lower Tangguh LNG price for Tohoku
Friday, February 10 2017 - 06:58 AM WIB
Courtesy of BP
The government plans to adjust downward the price of LNG from Tangguh plant in West Papua for Japan?s Tohoku in line with declining price in the international market, according to a senior official.
Head of LNG Marketing Office at upstream oil and gas authority SKK Migas Rayendra Sidik said that the regulatory body and the Ministry of Energy and Mineral Resources are currently reviewing the LNG price for Tohoku.
He said that the new price will be set for the delivery of two standard cargoes of LNG per year for the period of 2019-2020.
He said that the price adjustment is made possible as a clause under the sales and purchase agreement signed with Tohoku allows for the price review.
?There will be price (downward) adjustment of LNG (from Tangguh) for Tohoku ? If I?m not mistaken, it?s for 2019-2020 contract ? The volume is small only 2 standard cargoes per year,? Rayendra told Petromindo.com recently.
?The slope will be adjusted from 15.4 percent to be line with the current price,? he added.
Editing by Reiner Simanjuntak