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LNG shipping to Fujian in May

LNG shipping to Fujian in May
Indonesia will start delivering liquefied natural gas to China's Fujian terminal in May, even though price negotiations are still underway.

Indonesia will start delivering liquefied natural gas to China's Fujian terminal in May, even though price negotiations are still underway.

Indonesia will start delivering liquefied natural gas to China's Fujian terminal in May, even though price negotiations are still underway, a government official said Tuesday. "The negotiations are continuing, and at the same time we will be shipping the gas," said Raden Priyono, chairman of upstream oil and gas regulating body BP Migas.

Priyono said it will start by shipping 120,000 metric tons in May.

Indonesia has agreed to sell 2.6 million tons a year of LNG from the Tangguh LNG plant to China's Fujian terminal for 25 years starting early 2009.

But the Indonesian government said last year it would seek to increase the price from $3.80 per million British thermal units following a sharp increase in global oil prices before they corrected down. Despite the correction in oil prices, the government is still keen to negotiate a new price for the gas.

www.TurkishMaritime.com.tr

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