Total to sign gas deal with Western Buyers,
... and BP to sign gas deal with Kogas in June
Tuesday, May 19 2009 - 03:07 AM WIB
Also during the occasion, Britsh energy firm BP Plc, the leader of the Tangguh LNG consortium will sign a GSA with South Korean firm Kogas, BPMIGAS's chairman R Priyono told reporters.
Western Buyers consists of Chubu Electric Power Company (EPC), Kansai EPC, Kyushu EPC, Nippon Steel Co, Ltd, Osaka Gas Co. Ltd and Toho Gas Co Ltd.
Total E&P Indonesia, the operator of Mahakam PSC that supplies gas to the Bontang LNG plant in East Kalimantan, along with its partner Inpex Corp. signed Heads of Agreement (HoA) on Feb. 13, 2009 in Osaka, Japan, for the extension of LNG sales to the Western Buyers, BPMIGAS announced in February.
Under the deal, Mahakam PSC partnership through Bontang LNG plant in East Kalimantan would supply 25 million tons of LNG for 10 years starting 2011.
Bontang will supply 3 million tons per annum (MTPA) of LNG in the first five years, of which 2 MTPA would be shipped by seller (CIF) and 1 MTPA by buyers (FOB). For the next five years Bontang will supply 2 MTPA, of which 1 MTPA would be on CIF term and another 1 MTPA on FOB.
Total and Inpex have equal interest of 50 percent in Mahakam PSC.
Meanwhile, the gas that will supplied by the BP-led consortium from the Tangguh LNG plant in West Papua was initially allocated for U.S. firm Sempra Energy. Sempra has a 20-year contract to take 3.6 million tons per year of LNG from Tangguh. The Tangguh consortium has the right to divert half the volume to other buyers but they have to pay some fee to Sempra, should they realize the right.
BPMIGAS announced in May 14, 2009 that the Tangguh consortium had agreed to divert 1 milion tons of LNG per year of the Sempra LNG to KOGAS and was in talks to clinch a similar deal with Japan's Chubu Electric. (Godang)