Govt to announce new Tangguh LNG price for South Korea firms next week
Tuesday, July 1 2014 - 12:37 PM WIB
Ministry of Energy and Mineral Resources will announce the result of price renegotiation of Tangguh LNG for South Korea firms POSCO and SK Power next week.
"We have successfully renegotiated the price of Tangguh LNG for Fujian from US$3.3/mmbtu to $8/mmbtu. So, now we are working to renegotiate Tangguh LNG?s price for South Korea, and have almost succeeded. We will announce the results next week," Minister of Energy and Mineral Resources Jero Wacik said in Jakarta, on Tuesday.
According to him, the result of renegotiation on Tangguh gas price to Fujian is something extraordinary. "It will be trigger to another," said Wacik.
He asserted that all of the unreasonable gas price contracts will be renegotiated.
Tangguh has contracts to supply SK Power and POSCO with approximately 1.2 million ton per annum of LNG for the period of 20 years at a price of $3.5/mmbtu. The contracts were signed in 2004.
Editing by Johannes Simbolon