Listrik Negara, BP in Talks for Tangguh LNG Long-Term Supply

PT Perusahaan Listrik Negara, Indonesia’s state-owned utility, is in talks to buy 1 million metric tons a year of liquefied natural gas from BP Plc’s Tangguh plant in West Papua province.

“We are looking for a long-term contract of more than 10 years,” Nur Pamudji, the president director of the electricity supplier, said in an interview in Jakarta today. The cleaner-burning fuel will be used to supply a floating terminal in offshore North Sumatra, which will be built by PT Perusahaan Gas Negara, he said.

BP is in talks with Listrik Negara, William Lin, BP’s Asia Pacific president, said today in an e-mailed response to questions. The London-based explorer, which has a 37-percent share in the Tangguh project, can’t disclose further details, Lin said.

Indonesia, the world’s second-largest exporter of LNG after Qatar, is trying to boost natural gas and coal usage in power stations as oil production declines in aging fields.

BP will amend a supply contract with Sempra Energy to divert LNG supplies earmarked for Sempra’s terminal in Mexico to other buyers, including domestic customers, the nation’s oil and gas regulator, BPMigas, said Feb. 16.

Listrik Negara will use the Belawan LNG terminal to regasify the fuel before supplying to its power plant in North Sumatra, Heri Yusup, the corporate secretary at Jakarta-based Gas Negara said. Gas Negara may start operating the facility, which will have capacity as much as 2 million metric tons a year, in 2013, Yusup said.

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