Kogas lobbies for LNG from Tangguh

Korea Gas Corporation (Kogas), the South Korea?s energy giant, is carrying out extensive lobbying to try to get liquefied natural gas (LNG) from the Tangguh LNG plant in Papua, according to upstream authority BPMIGAS.

BPMIGAS Chairman R. Priyono said however actual negotiation is yet to be conducted as the firm has not yet agreed to the terms proposed by BPMIGAS. ?We have told BP, the operator of Tangguh, that if Kogas insists on securing gas for the industries there, we?d like some of those industries to relocate to Indonesia,? Priyono said as reported by Kontan.

On a separate statement, Priyono said that the Tangguh LNG would ?break-even? by 2013, meaning that the government?s take from the project until the end of next year will have covered the cost recovery spent on the project.

?Regional government will also start receiving its portion by then,? said Priyono. The break-even point was initially predicted to take place in 2015, he added, but the high prices of oil and gas have accelerated that process. (*)