BP has signed an agreement with Indonesian state-owned power utility Perusahaan Listrik Negara (PLN) to supply 16 LNG cargoes annually from Tangguh project during the period 2020 to 2035, Reuters reported.
The Indonesian oil and gas regulator SKKMigas
said that the supply will be directed to different destinations so that PLN can use it for various power plants in Indonesia.
The government is expected to get $5 billion in revenue from LNG sales during the period of the contracts, said SKKMigas chief Amien Sunaryadi in a statement.
Indonesian LNG producers have faced an increase in uncommitted cargoes of the super-cooled fuel in recent years amid an expansion of cheap gas production globally
and sluggish development of domestic LNG consumption.
Christina Verchere, president BP Asia Pacific noted that this is seen as a positive step in the expansion of the Tangguh Train 3 expansion.