Indonesia to Sell 54 Spot LNG Cargoes in May

Indonesia plans to sell 54 cargoes of LNG in the spot market in May, the Wall Street Journal reported, citing Rudi Rubiandini, operations deputy at BPMigas.

BPMigas also said that the negotiations on the supply diversion of LNG, produced by the Tangguh LNG terminal from Sempra Energy to the domestic market, would be concluded in early May at the latest, according to a report by the Jakarta Post.

BPMigas head Raden Priyono said the progress of the negotiations had reached 98%. Clauses on the new amount of cargo to be delivered to Sempra had been agreed, the Jakarta Post cited him as saying.

“The remaining 2 percent is the final approval from Energy and Mineral Resources Ministry,” he said.

“Around 90 percent of Sempra’s total allocation of 3.7 million tons per annum will be taken back by the government. That amount will give us more LNG to be allocated for the domestic market,” he added.

BP and its partners in the Tangguh LNG Project have signed a long term sales and purchase agreement with Sempra Energy in 2004 to sell up to 3.7 million tonnes of LNG a year.

[mappress]

LNG World News Staff, March 30, 2012; Image: BP