PGN wants lower LNG price
Monday, May 20 2013 - 04:00 AM WIB
State gas distributor PT Perusahaan Gas Negara (PGN) is requesting the government's commitment to help make sure the availability of LNG for domestic industries at a price below that of international price.
"It will be difficult for industries to absorb the gas If the price from upstream sector (producers) is too expensive," said PGN Director Jobi Triananda Hasjim to reporters on Sunday during the firm's 40th anniversary celebration in Jakarta.
PGN, he added, needs LNG supply for its two FSRUs, located in Jakarta and Lampung. As negotiation with BP Indonesia is still underway, PGN hopes to secure the supply at a fairly cheap price.
"If let's say from Tangguh (operated by BP) the LNG price is set at US$11/MMBTU, plus transportation and regasification fees, then the price to industries could be above $15/MMBTU. This, in average, would be about 50 percent higher than the gas price sold by PGN," said Jobi.
Editing by Dadan Wijaksana