China asks for more LNG

China has formally asked additional supply of one million tons of liquefied natural gas (LNG) from Indonesia, but Upstream Oil and Gas Regulatory Body (BPMigas) has reportedly declined to focus on domestic supply, Detikfinance.com reported.

The popular online publication quoted Sulistya Hastuti Wahyu saying "China asked additional supply of one million tons. But Mr Priyono (BPMigas chairman) said, domestic supply will be the priority."

China asked additional supply on Sunday, July 26, when the first LNG shipment from Tangguh plant (Papua) arrived in Fujian LNG Terminal.

Tangguh LNG is built with US$5 billion investment, sourced its natural gas supply from six gas fields in three production sharing contracts (PSCs): Wiriagar, Berau, and Muturi. The gas is transported through 22-km pipeline to the LNG plants.

BP is the owner of 37.16% shares in the project. Other partners are MI Berau BV (16.3%), CNOOC Ltd (13.9%), Nppon Oil Exploration (Berau) Ltd (12.23%), KG Berau/KG Wiriagar (10%), LNG Japan Corporation (7.35%), and Talisman (3.06%). 

Tangguh has a long-term contract to supply 2.6 million tons of LNG to LNG Fujian, China, 1.15 million tons to K-Power and Posco, South Korea, plus a flexible contract to supply up to 3.7 million tons per year to Sempra LNG in Baja California, Mexico. 

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