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BP Allocates 40% Gas Production from Tangguh for Domestic Consumption

October 10, 2012

http://www.theindonesiatoday.com/news/resources-news/resources-photo/item/997-bp-allocates-40-gas-production-from-tangguh-for-domestic-consumption.html

10-10-2012

BP Allocates 40% Gas Production from Tangguh for Domestic Consumption

Bp.com

NUSA DUA (Indonesia Today) – BP Indonesia has agreed to allocate 40% of gas production from train 3 of Tangguh, West Papua for domestic consumption, Bisnis Indonesia reported this morning.

Energy Minister Jero Wacik said the government had met with BP operator and shareholders of Tangguh block to discuss about domestic consumption of gas. BP has agreed to allocate 230 mmscfd of gas from train 1 and 2 for domestic consumption while train 3 will supply 3.8 million ton of gas per year for domestic consumption. William W. Lin, BP’s regional president for Asia Pacific, confirms BP’s commitment and said the company is now awaiting the approval from the Upstream Oil and Gas Regulator BPMigas for front end engineering design (FEED) for train 3 consruction. He said train 3 is targeted to commence operation in 2018. Jero Wacik also said the government will renegotiate gas contract, between LNG Tangguh and Fujian, China, as the price is away below domestic price. Gas export from Tangguh to Fujian is priced for US$3.35 per mmbtu, compared to domestic price of US$5-6 per mmbtu. ( hans)
Last modified on Wednesday, 10 October 2012 02:38

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