Sinopec eyeing LNG supply from Tangguh

China Petroleum & Chemical Corp, (Sinopec Group), China?s second-largest oil company, is eyeing LNG supply from Tangguh LNG project for its proposed LNG terminal in Shandong province, a senior government official said on Friday.

Evita Legowo, Director General of Oil and Gas at the Ministry of Energy and Mineral Resources told Petromindo.Com that the company is eyeing LNG supply that could be diverted from Sempra Energy?s receiving terminal in Mexico.

Evita said the company?s senior official had expressed its intention and is willing to pay at prevailing international price. She said the company had yet disclosed the volume of LNG it wanted to buy.

BP-operated Tangguh LNG is contracted to supply 3.7 million tonnes per annum of LNG starting 2009 to Sempra?s receiving terminal in Costa Azul, Mexico. Under the contract, Sempra would pay the Tangguh LNG based on Southern California (Socal) index price. BP could divert half of the volume by paying $1 per MMBTU premium to Sempra.

BPMIGAS Gas Marketing Division Head Fathor Rahman said he was not aware of Sinopec?s intention.

Tangguh has already agreed in principle to supply 1MTPA of the diverted LNG to South Korean firm Kogas and is in advanced talks with Tokyo Gas and Thai firm PTT to sell the remaining volume, a BPMIGAS senior official said recently. (godang)