Jero leads Tangguh LNG renegotiation team

President Susilo Bambang Yudhoyono has assigned Minister of Energy and Mineral Resources Jero Wacik to lead the government?s team tasked in renegotiating the Tangguh LNG selling price to China.

According to Presidential Decree No 16/2013, signed on May 13, but was only recently issued by the office of the Cabinet Secretary on its website, Rudi Rubiandini, Chairman of the upstream authority SKK Migas, has been appointed as secretary of the team, whose members include various senior officials of the ministry of energy and mineral resources, and the Indonesian Ambassador in China.

The team has a mandate until December 31, 2013.

The government is struggling to get a better price for the Tangguh LNG exported to China?s Fujian as the price of US$3.5 per mmbtu under the current contract is deemed too low. In comparison, the price of LNG in the domestic market has now reached $5-6 per mmbtu.

Editing by Reiner Simanjuntak