PGN-led LNG consortium in talks with Bontang and Tangguh

The consortium of three state owned companies PT Perusahaan Gas Negara (PGN), PT Perusahaan Listrik Negara (PLN), PT Pertamina have started negotiations with the Bontang LNG plant in East Kalimantan and the Tangguh LNG plant in Papua on LNG supplies for the LNG terminal to be built by the consortium in West Java.

?They have started negotiations. The consortium expects to get an annual supply of 1.5 million tons from Bontang and 1 million tons from Tangguh?s Train 3,? Eddy Purwanto, marketing deputy at oil and gas upstream regulatory agency BPMIGAS, said on Tuesday.

According to Eddy, BPMIGAS has set the range for the price of the LNG supplies from the two LNG plants at ?lower than the international price but higher than the current ceiling price of gas on the domestic market.? The ceiling price of gas on the domestic market is now $5 per million British thermal unit (MMBTU).

?The exact price will be determined by business-to-business negotiations,? Eddy said.

Gas distribution firm PGN, electricity firm PLN and oil and gas company Pertamina have set up a consortium with PGN as consortium leader to build an LNG terminal in West Java to supply the gas needs of PLN?s power plants and industries in Banten and West Java. (Alex)