BP to Supply LNG to Indonesia Long Term
BP signs MoU with PLN (Indonesia's State Electricity Company)to provide long-term gas supply for domestic needs
On behalf of the Tangguh PSC partners, BP yesterday signed a Memorandum of Understanding (MoU) to provide long-term LNG supply to Indonesia’s state electricity company, PT. PLN (Persero), for domestic Indonesian needs and also to support PLN in providing electricity for Teluk Bintuni Regency, Papua Barat province. The MoU was signed as part of an expansion plan for the Tangguh LNG project in Papua Barat province, Indonesia.
The MoU outlines BP’s commitment to work in partnership with PLN to reach an agreement for the supply of LNG for domestic power plant usage, as well as the supply of electricity to meet the demand of local communities and small and medium-sized enterprises in Teluk Bintuni Regency and surrounding areas.
Group Chief Executive Bob Dudley.
"We are pleased that the Government of Indonesia is working closely with us as we progress plans for the further development of Tangguh and, together with the partners in the Tangguh project, recognises the importance of providing LNG to both domestic and international markets," Bob Dudley said at the signing ceremony. "Tangguh is a significant asset for BP that helps underpin our significant gas value chain business across the Asia Pacific region."
BP has over 35 years experience in Indonesia and is one of the largest foreign investors in the country. Activities are dominated by its exploration and production business, notably the Tangguh LNG operations in Papua Barat province, which began operations in mid-2009.