Kogas seeks to buy LNG from Tangguh

South Korean gas importer Kogas has been approaching Indonesia about the possibility to import LNG from Tangguh starting 2007, a BP Migas official said Thursday.

“Kogas has notified its intention to buy 500,000-1 million tons per annum of Tangguh LNG in 5-year contract,” said Eddy Poerwanto, deputy chairman of Indonesian upstream oil and gas authority BP Migas.

Eddy said preliminary talks had been held by BP Migas and Kogas. He declined to reveal whether Kogas is looking for direct purchase or will open the opportunity to other LNG suppliers through open bidding.

Eddy said Tangguh would be able to meet Kogas requirement as the plant still have enough spare capacity.

Meanwhile, Eddy said negotiation with Kogas to extend 3 MTPA Arun III LNG contract which will expire in 2007 will go on slowly as Kogas is still occupied with deregulation problems and the government had still not allowed the state-owned company to resume negotiation.

Earlier, a Kogas spokesman said Kogas may open negotiation later this year if it gets green light from the government to do so. (godang)