Tangguh LNG supply to PTT unlikely because price too low: BPMIGAS
Tuesday, October 28 2008 - 01:26 AM WIB
"We shall improbably send LNG to the firm because the price (offered by the firm) is too low," BPMIGAS' chairman R.Priyono told Petromindo.Com in a phone conversation.
He however did not unveil the price.
State owned fertilizer firm PT Pupuk Iskandar Muda (PIM), based in Nangroe Aceh Darussalam, may, however, get supplies from Tangguh as long as the firm is willing to pay for the LNG supply as much as the U.S. firm Sempera Energy has promised to pay.
Meanwhile, China Petroleum & Chemical Corp, (Sinopec Group), China?s second-largest oil company, "remain a potential buyer" he said.
BPMIGAS said last month that that it and Anglo-American energy giant BP Plc, the leader of the consortium that is building the Tangguh LNG plant, were in advanced talks to sell LNG from Tangguh project that was originally intended for Sempra PTT and a local fertilizer firm.
BPMIGAS Deputy Chairman in Charge of marketing Djoko Harsono told reporters Tangguh may supply 350,000 tons per annum of LNG to PTT and PIM.
Tangguh LNG has signed a contract to supply 3.7 million tonnes 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 of LNG by paying $1 per MMBTU premium to Sempra.
BPMIGAS officials earlier said that South Korean firm KOGAS had agreed to buy 1 MTPA of LNG from Tangguh and Japan?s firm Tokyo Gas is already in advanced negotiation to close 500,000 MTPA supply deal from Tangguh.
Evita Legowo, Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, said earlier this month that Sinopec was also intersted in LNG supply from Tangguh for its proposed LNG terminal in Shandong province. (Godang)