PGN, BP negotiation on LNG supply deal stalled

State gas distributor PT Perusahaan Gas Negara (PGN) said on Wednesday that negotiation with British oil giant BP as the operator of LNG Tangguh facility on LNG supply to the proposed Belawan LNG terminal in North Sumatra has not made any progress yet.

PGN development director Bambang Banyudoyo told Petromindo.Com Wednesday there was no progress yet on the negotiation.

Upstream oil and gas regulator BPMIGAS division head for gas Ira Miriwati confirmed that the negotiation between PGN and BP is currently stalled, without giving further details.

On Jan. 26, PGN president director Hendi P Santoso told Petromindo.Com that PGN has been given until March by the directorate general of oil and gas to sign head of agreement (HoA) on LNG supply to the proposed Belawan LNG terminal.

PGN has sent letter to the director general of oil and gas in which the firm asked the government to finalize allocation of 1.25 metric tonne per year of LNG from Tangguh. (bernard)