VIVAnews - Chubu Electric signed Head of Agreement (HoA) on Tangguh liquid natural gas (LNG) purchase as a diversion from Sempra.
According to Head of Upstream Oil and Gas Upstream Regulator (BP Migas) R Priyono, the HoA had been signed early in 2009. "The price offered is quite high," he said in Jakarta on Friday, May 15.
Another HoA had also been signed involving Korea Gas (Kogas) said Priyono. "The sales diversion is an effort to increase state income," he explained.
After the HoA, the government is targeting to sign the sales purchase agreement (SPA) by the end of 2009.
Priyono said BP Migas also set up a negotiation with Kogas to revise the LNG prices with selling prices of US$20 per mmbtu having the volume of one million metric tons and K Power.
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Translated by: Ariyantri E. Tarman
