BP of UK said it has 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 agreement was signed at the office of the Minister of Energy and Mineral Resources by William Lin, BP Regional President Asia Pacific, and PLN’s Head of Oil Fuels and Gas Division Suryadi Mardjoeki; and witnessed by Energy and Mineral Resources Minister Jero Wacik, BPMIGAS Chairman R. Priyono, and BP 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 .”
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.
“ This MoU reflects our intention of supporting the economic development of Papua Barat, and helping meet the growing demand for energy in Indonesia as a whole, balancing the needs of all key stakeholders ,” added William Lin.
Tangguh is operated by BP Indonesia as contractor to BPMIGAS. BP holds a 37.16% interest in the project. Other Tangguh contract partners are MI Berau B.V. (16.30%), CNOOC Ltd. (13.90%), Nippon Oil Exploration (Berau), Ltd. (12.23%), KG Berau/KG Wiriagar (10.00%), LNG Japan Corporation (7.35%), and Talisman (3.06%).
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LNG World News Staff, May 27, 2012