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NEWS UPDATES 15 May 2009

Indonesia’s LNG supply to China starts in June

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Indonesia will begin supplying liquefied natural gas to China in June, China's official Xinhua news agency reported on its website on Thursday, citing Indonesia's energy minister.

"We expect one cargo of LNG from Tangguh can be shipped by June," Purnomo Yusgiantoro was quoted as saying.

Under a long-term contract, China's Fujian terminal, operated by China National Offshore Oil Corp, will receive 2.6 million tonnes of LNG per year from Indonesia's Tangguh gas project in Papua for 25 years starting this year.

The Xinhua report said the deal was priced at $3.35 per million British thermal units.
Indonesia has said it wants to renegotiate the LNG price from Tangguh with China National Offshore Oil Corp and South Korean companies.

BP-led (BP.L) Tangguh has an annual production capacity of 7.6 million tonnes of LNG in its first phase.










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