Tangguh may sell Chubu 18 cargoes of LNG
The Tangguh Liquefied Natural Gas (LNG) plant may sell 18 cargoes of LNG to Japan's Chubu Electric Power Co, upstream oil and gas regulator BPMigas told lawmakers on Tuesday.
"We are in the process of finishing the gas sales agreement negotiations. The sales volume is expected to be 0.5 million tons a year, equal to 18 cargoes, for three years," BPMigas's chairman R. Priyono said.
BPMigas did not announce much the potential price for the gas would be. "The buyer proposed quite a high price," he said.
The Tangguh LNG plant is located in Bintuni Bay, West Papua and is operated by energy giant BP.
The Tangguh LNG plant operator has signed a 20-year LNG purchase agreement with Korean companies POSCO and K-Power for a total of 1.15 million tons of LNG per year.
BP and its partners also has a 25-year contract to supply 2.6 million tons per year of LNG to CNOOC for China’s Fujian LNG terminal and a flexible contract to supply up to 3.7 million tons of LNG per year to the Sempra LNG Terminal in Baja California, Mexico.