Upstream energy regulator BPMigas said on Tuesday that it would reallocate 1.8 million tons of liquefied natural gas a year from Papua’s Tangguh field in Papua to Japanese electricity utility Chubu Electric Power and state-owned fertilizer firm PT Pupuk Iskandar Muda.
The LNG was originally destined for San Diego-based Sempra Energy, but the deal was called off because of a disagreement over theprice.
Raden Priyono, BPMigas head, said oil major BP, the lead operator of the Tangguh field, had agreed to supply Chubu with 250,000 tons of the fuel annually in 2011 and 2012 and 500,000 tons per year in 2013, 2014 and 2015.
“The remainder of the LNG will go to Pupuk Iskandar Muda,” he said.
In December, Pupuk Iskandar Muda warned it only had enough gas to keep its fertilizer plant in Aceh running until February unless it acquired more fuel.
http://www.thejakartaglobe.com/business/tangguh-lng-rerouted-to-pupuk-iskander-japan-firm/362917
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