PLN asked to negotiate its LNG purchase plan with BP Tangguh

The government has called on state owned electricity company PLN to soon negotiate its plan to buy liquefied natural gas (LNG) with BP Tangguh which is currently building a LNG refinery plant in Papua.

Kardaya Warnika, the chairman of the oil and gas exploration regulatory body BP Migas, said in Jakarta on Tuesday that PLN should soon hold a negotiation with BP Tangguh on the price, delivery schedules and the payment for the LNG it planned to buy.

He said that PLN had earlier asked the agency the possibility of buying the unused gas reserves at BP's Tangguh fields in Papua. "The LNG will be shipped to PLN's LNG receiving terminal which will be built in Cilegon,"he said.

BP Tangguh is currently building a two LNG train (processing unit) near its Tanguh gas field in Papua to meet its LNG export contracts of about 6.9 million tons a year. The LNG plant is expected to begin operation in 2008.

BP will use most of its gas production from Tangguh for the two LNG trains. BP Migas hoped that the remaining gas reserves can be used to produce LNG for PLN. (Godang)