Tangguh to supply LNG to Chubu Electric

Upstream oil, gas authority BPMIGAS said BP is in talks to supply LNG from BP-operated Tangguh LNG project to Japan?s Chubu Electric.

"We are in talks with Chubu for LNG supply from Tangguh. We are talking on volume and other issues," BPMIGAS Chairman R. Priyono said on Thursday. He did not give detail.

The LNG offered to Chubu come from, part of supplies diverted from U.S. firm Sempra Energy.

Sempra has a 20-year contract to lift 3.6 million tpy of LNG from Tangguh project. BP hs the right to divert half its volumes to other destination by paying fee to Sempra.

Priyono said the deal with Chubu will be sealed next month.

He also said that similar deal to supply 1 MTPA of Sempra diversion to South Korean firm Kogas would also be sealed next month.

The Tangguh project is due to start delivery of LNG early July, according to energy minister Purnomo Yusgiantoro.(bernard)