PLN ready to pay higher for Tangguh LNG

State electricity firm PT PLN is ready to buy LNG from Tangguh LNG project at a market price, even higher than the price to be paid by Chinese firm CNOOC. 

 

PLN’s primary energy director Ali Herman Ibrahim said it would meet with upstream oil and gas regulatory body BPMIGAS and BP Indonesia as the operator of Tangguh LNG project to discuss the issue today (Wednesday).

 

“If others are able to buy, PLN also can purchase at market price. As long as they sell reasonably, we buy. Market price, why not,” he said after signing a coal purchase agreement at PLN's headquarters in Jakarta on Wednesday.

The consortium led by British energy giant BP Plc that is building the Tangguh LNG project in Papua has signed a contract with CNOOC to supply China's province of Fujian at the price of US$3.8 per mmbtu

 

Ali said PLN needed certainty regarding future supply from Tangguh. “Once there is a certainty about the commitment and volume of supply we would promptly build an LNG receiving terminal,” he went on.

 

PLN is planning to invest US$300 million to build an LNG receiving terminal that would be able to handle three million tons of LNG per annum. (godang).