PLN upbeat on securing LNG from Tangguh

By Godang Sitompul

State electricity company PT PLN said it welcomes the positive progress of the negotiation between upstream authority BPMIGAS and Sempra Energy over the planned diversion of portion of Tangguh LNG for Sempra, to domestic buyers.

?We are ready to absorb 1 mtpa (million tons per annum),? President Director of PLN, Nur Pamuji told Petromindo.com.

Nur said that he is optimistic that portion of the LNG for Sempra would be diverted to PLN. ?PLN has been discussing with BP Tangguh and they welcome the interest of PLN,? he said.

Upstream authority BPMIGAS Vice Chairman Hardiono said Wednesday that the result of the discussion with Sempra Energy over LNG diversion has been ?positive?. He however declined to provide further details over the talks due to request by Sempra.

Earlier, he said BPMIGAS was seeking to divert up to 1.4 million tons per annum (mtpa) of LNG, including to domestic buyers.

Apart from PLN, gas distributor firm PT Perusahaan Gas Negara Tbk (PGN) had expressed interest to secure gas from the Tangguh LNG project which is operated by BP.

Under the original contract, Tangguh LNG was allowed to divert up to 50 percent of the annual volume by paying fee of US$1/mmbtu to Sempra.

Tangguh LNG has long-term contract to sell 3.7 mtpa of LNG to Sempra.

Editing by Roffie Kurniawan