BP to supply LNG to Indonesian utility for 20 years from 2013

BP Plc (BP/) signed an agreement to supply liquefied natural gas from its Tangguh plant in Indonesia to the country’s state-owned electric utility PT Perusahaan Listrik Negara for 20 years.

BP will provide a total of 23.96 million metric tons of LNG, or the equivalent of 28 cargoes, during the contract to Listrik Negara starting in 2013, Johanes Widjonarko, deputy chairman at Indonesia’s interim energy regulator SKMigas, said in Jakarta today. The fuel will be supplied through a floating storage and regasification unit in West Java, the agency said in a separate statement.

“The LNG will be sourced initially from Tangguh’s existing trains and then from its expansion project with the startup of Train-3,” William Lin, BP’s Regional President for Asia- Pacific, said in an e-mailed statement.

The Tangguh plant in Indonesia’s West Papua province has two LNG production lines, known as trains, which can produce at least 7.6 million tons a year, according to BP’s website. BP and its partners plan to build a third facility with a capacity of 3.8 million tons a year which may start operating in 2018, the company said on June 29.