Tangguh approved to divert 43 cargoes of LNG

By Bernard Loebs

The Ministry of Energy and Mineral Resources has thus far approved the diversion of 43 cargoes of LNG from BP-operated Tangguh which were initially dedicated for the US west coast to customers in Japan, South Korea and Indonesia for this year, an official with upstream oil and gas authority SKK Migas said.

Gas Commercialization Division Head Arief Riyanto told Petromindo.Com earlier this week that in 2014 Tangguh will divert 12 cargoes of LNG from Tangguh to Tokyo Electric Power Co. (TEPCO), 4 cargoes to Kyushu Electric Power, 4 cargoes to Kansai Electric Power and 8 cargoes to South Korea?s KOGAS. Tangguh will also supply 15 cargoes to domestic buyers which comprises of Aceh fertilizer maker PT Pupuk Iskandar Muda (4 cargoes) , state electricity firm PT PLN (8 cargoes) and state gas distribution firm PT PGN (5 cargoes).

Under the original deal with US firm Sempra Energy, Tangguh is contracted to ship 60 cargoes of LNG to Sempra?s Costa Azul receiving terminal in North America this year.

Arief said the cargoes that are not diverted will be shipped to Sempra.

Another SKKMIGAS official earlier told Petromindo.Com that under the new deal with Sempra, Tangguh has the right to divert 100 percent of the shipment to North America in order to secure higher price. Tangguh LNG and Sempra have agreed to totally stop LNG export to North America starting 2014, and will divert the whole contract volume to export markets in Asia as well as to domestic market.

Editing by Alexander Ginting