Kogas, CPC ask Pertamina to lower LNG price

By Febry Silaban

Kogas and CPC Taiwan have demanded state-owned oil and gas firm PT Pertamina for lower price of LNG from the Bontang LNG plant in East Kalimantan as the three are currently in negotiations over renewal of their current respective Badak V and Badak VI LNG contracts, which are set to expire end of this year.

?There?s currently no price agreement yet with CPC and Kogas. They demand for lower price. Negotiations are in progress,? said Wiko Migantoro, Vice President of LNG Directorate at Pertamina to Petromindo.com.

He expected the Badak V and Badak VI LNG contracts can be extended. He added that the type of contract, whether long-term or not, has also yet to be finalized.

The Badak VI contract with CPC Taiwan (1. 84 mtpa) and the Badak V contract with Kogas (1.02 mtpa) will expire in December 2017.

Editing by Reiner Simanjuntak