Tangguh allocates 15 cargoes of LNG for Arun regasification facility

The Tangguh LNG plant in West Papua has delivered 7 cargoes of LNG to the Arun regasification facility in Aceh in the first semester of this year, nearly half of its full-year commitment of 15 cargoes, according to upstream oil and gas authority SKK Migas.

?The remaining cargoes will be supplied in accordance with the initial commitment,? said SKK Migas Public Relations Head Taslim Z. Yunus in a statement Tuesday.

He said that state-owned electricity firm PT PLN is currently the only consumer of the Tangguh LNG via the Arun regasification facility.

A cargo was previously allocated for PT Pertagas Niaga, a subsidiary of state owned oil and gas firm PT Pertamina, but the latter returned the cargo due to operational obstacle at the Arun facility.

Taslim said that the average price of LNG from Tangguh to Arun facility as per the first semester of this year stood at US$4.9 per MMBTU, down from last year?s average of $6.74 per MMBTU. ?The price includes cost of exploration, exploitation, liquefaction, and transportation with distance of 4,800 km,? said Taslim, adding that gas and LNG prices move in tandem with oil price.

Editing by Reiner Simanjuntak