Indonesia seeks to increase Tangguh LNG selling price
Monday, March 5 2007 - 04:33 AM WIB
?Talks are ongoing with South Korean customers (to increase price),? Purnomo said in a written reply during a parliamentary hearing. BP-operated Tangguh LNG signed LNG supply deals with South Korean firms SK and Posco, in which Tangguh would supply 1.1 MTPA of LNG for 20 years. Each company will receive 0.55 million MTPA.
Purnomo did not give detail, but his reply suggested that Indonesia is trying to increase ceiling price.
Purnomo also said talks are ongoing to divert some future LNG cargoes that would be supplied to the West Coast of USA to Japan.
Tangguh signed LNG supply with Sempra Energy, where Tangguh would supply 3.7 MTPA of LNG to Sempra?s Energia Costa Azul in Mexico. Under the deal, Tangguh would have the right to divert cargoes destined to Sempra in exchange for appropriate compensation for all cargoes diverted.
Purnomo said that both negotiations, if succeed, would increase Tangguh LNG selling price.
Similar talks in a bid to increase selling price had also been successfully conducted earlier with CNOOC, which would import Tangguh LNG to its Fujian LNG receiving terminal.
Tangguh, which is operated by BP, is currently 70 percent completed and will commence production in 2009. The plant will have 7.6 MTPA capacity. (godang)