PGN in talks with BP Tangguh on LNG contract

By Febry Silaban

State-owned gas distributor PT PGN Tbk. through its subsidiary PT PGN LNG Indonesia, the owner of FSRU Lampung, is in discussion with BP Berau Ltd. on a long-term supply of liquefied natural gas (LNG) from the Tangguh LNG plant in West Papua, for 30 years.

?We are trying to find a long-term supply of LNG, with a priority to get domestic LNG. Now, we are in discussion with BP Tangguh on long-term contract for 30 years,? Nisi Setyobudi, President Director of PGN LNG Indonesia, a subsidiary of PGN, told Petromindo.com.

Nisi added that the expected LNG volume is also being discussed.

PGN has also approached overseas LNG producers for possible supply and has signed an umbrella contract called the Memorandum of Sale & Purchase Agreements (MSPAs) with Gazprom, Shell, BP, BG and Mitsui for LNG cargo in spot market. ?This means that the contract can be executed at any time if we need LNG,? he said.

Editing by Reiner Simanjuntak