PGN expects to sign LNG supply with BP in June

State-owned gas distributor PT Perusahaan Gas Negara (PGN) expects to sign an agreement with the operator of Tangguh LNG plant in West Papua on the supply of LNG for its planned floating storage and re-gasification unit (FRSU) in Belawan, North Sumatra in June.

PGN's president director Hendi Prio Santoso said that the deal with LNG Tangguh is expected to be signed in June this year with a 10-year contract. He said that the price is still in negotiation.

Meanwhile, BPMIGAS? chairman, R. Priyono said on Wednesday that Tangguh LNG plant will supply 140 mmscfd to the FRSU. But he said BP Tangguh, the operator of the Tangguh LNG plant, had yet to reach an agreement with the state firm on the price.

On January 26, the Directorate General of Oil and Gas said it had given PGN until March to sign a heads of agreement (HoA) on LNG supply with BP Tangguh.

He said that the volume of LNG remained as earlier planned, that is 1.25 MT per year. It is the volume that PGN is supposed to supply to Sempra Energy in North America. (*)