Previously, Jakarta was unsuccessful to meet its contractual commitments to traditional markets such as Japan, South Korea and Taiwan, often agreed more than a decade ago, as it wanted to switch more supply to the local market.
We are in talks with Chubu for LNG supply from Tangguh. We are talking on volume and other issues, Priyono, the chairman of BPMIGAS said.
We want to increase state revenue from selling more LNG. We hope to settle the deal this year, added Priyono.
In December 2008, Indonesia was unsuccessful to sign an agreement with Tokyo Gas Co., Ltd. for offering 500,000 tones of LNG to the company.
But in July 2008, Indonesia has signed a preliminary agreement to supply LNG to Korea Gas Corporation (Kogas).
Indonesia will sell less than one million tones per year (tpy) of gas to Kogas at a price linked with Japan’s crude cocktail.
The LNG Indonesia is providing will come from the Tangguh project, part of supplies diverted from Sempra Energy.
Sempra Energy has signed 20-year contract to lift 3.6 million tpy of LNG from the 7.6 million-tpy Tangguh project, led by BP Plc. It has the right to sidetrack half its volumes to customers other than its own new terminal in Mexico.
