PLN says LNG talks with Iran LNG progressing

State electricity firm PT PLN (Persero) said LNG supply talks with Iran LNG Corp. (ILC) is continuing.

CEO Dahlan Iskan said on Tuesday that ILC?s team has visited PLN?s office on Monday to further the talks and has asked PLN to submit asking price for the LNG. ?We asked ILC to give PLN special price,? he said.

Separately, PLN?s Gas and Fuel Division Head M. Suryadi Mardjoeki said that PLN is seeking supply of 1.5 MTPA from ILC with contract duration of 10 or 15 years, starting 2013. Delivery point will be at FSRU in Jakarta Bay operated by PT Nusantara Regas, he said.

ILC is based in Iran ?s southern Bushehr province in the Pars II special economic zone. The gas it wants to chill into a liquid would come from South Pars, which together with the adjacent North Field in Qatar comprises the largest known gas deposit in the world.

ILC expects to produce 8 million tons of the fuel in its first year of operation and foresees potential annual output of 10.8 million tons. ILC, the country's maiden LNG project is poised to begin exporting LNG by the end of year 2012 after tapping domestic funds to beat sanctions imposed by western countries. (bernard)