PLN interested to absorb LNG allocated for Sempra

By Godang Sitompul

State electricity company PT PLN said it is in talks with related parties ? Sempra Energy, upstream authority BPMIGAS and BP Plc, the operator of Tangguh LNG project, ? to divert portion of Tangguh LNG supposed to be shipped to Sempra Energy to the company.

M. Suryadi Mardjoeki, division head for fuel and gas procurement of PLN, told Petromindo.com that the talks have progressed well. ?The talk on LNG diversion has been 75 percent completed.?

PLN is hungry for LNG as it is in the process of switching a number of its power plants' fuel from oil to gas. Mardjoeki however declined to further explain the volume of gas it was seeking from Tangguh and gas price.

Separately, Rudi Rubiandini, Deputy for Operation of BPMIGAS, told Petromindo.com that a BPMIGAS team led by the authority?s Vice Chairman Hardiono will be heading for West Coast America next month to meet with Sempra Energy to finalize agreement over LNG diversion.

Rudi said portion of gas for Sempra may be diverted for domestic buyers, however, no decision has been made on who will get the LNG allocated for Sempra.

Apart from PLN, state oil and gas company PT Pertamina and state gas distribution company PT Perusahaan Gas Negara Tbk (PGN) have also expressed interest to secure gas from Tangguh LNG project, operated by BP.

Pertamina is seeking LNG to supply its Arun LNG receiving terminal which is in the process of modification. Meanwhile, PGN wants Tangguh LNG for its floating storage and regasification unit (FSRU) Belawan in North Sumatera.

Tangguh LNG has long-term contract to sell 3.7 million tons per annum of LNG to Sempra.

Editing by Roffie Kurniawan