PLN seeking long-term LNG contract from Tangguh

State electricity company PT PLN said it is seeking long-term contract for the supply of 1 million metric tons a year of liquefied natural gas from BP Plc?s Tangguh plant in West Papua province, The Jakarta Post reported.

?We are looking for a long-term contract of more than 10 years,? Nur Pamudji, the president director of PLN, said. The cleaner-burning fuel will be used to supply a floating terminal in offshore North Sumatra, which will be built by state gas company PT PGN, he said.

BP is in talks with PLN, William Lin, BP?s Asia Pacific president, said on Monday. The London-based explorer, which holds 37 percent share in the Tangguh project,further details, Lin said.

PLN will use the Belawan LNG terminal to regasify the fuel before supplying to its power plant in North Sumatra, Heri Yusup, the Corporate Secretary at Jakarta-based PGN said. PGN would start operating the facility which will have a capacity of as much as 2 million metric tons a year, in 2013, Yusup said. (*)