PLN formally asks for Tangguh LNG supply

State electricity firm PLN said on Thursday it had submitted formal letter to BP Indonesia earlier this week to get LNG supply from Tangguh LNG project in Papua, Republika daily reported.

?PLN has written letter to BP to prioritize Tangguh?s uncommitted gas to PLN,? said PLN president Eddie Widiono.

PLN is planning to develop LNG receiving terminal in Cilegon as part of the company?s plan to secure gas supply for its power plants. The LNG processing terminal is designed to be able to process 3-3.5 million tons of LNG per year in the first phase. The terminal is expected to be completed in 2009.

BP Indonesia, thus far, has not replied the letter, said Eddie.

Government had signaled that Tangguh LNG future expansion would be prioritized to meet increasing domestic demand, especially from PLN.

Currently almost all of the Tangguh?s first phase designed capacity of 7.6 MTPA is already contracted to Chinese, US and South Korean buyers. Tangguh LNG project, which is located in the easternmost province of Papua, is scheduled to commnce production in 2008.(*)