"We will see that the gas price is the same."Jakarta (ANTARA News) - The government said it wants the price formula for liquefied natural gas (LNG) supplied from Tangguh LNG plant for the Arun terminal in Aceh is the same as used for Jakarta.
"We will see that the gas price is the same," deputy energy and mineral resource minister Rudi Rubiandini said here on Friday.
Rudi said the government did not want that industrial consumers would have to pay a higher price for gas in Arun.
The government has reached an agreement on the formula used to set the price of LNG from Bontang, East Kalimantan.
The price formula is used the Indonesia crude price (ICP) as the reference , Rudi said.
Meanwhile, the state electricity company PLN and the operator of Tangguh LNG plant BP Berau Ltd agreed to use Japan cocktail crude (JCC) as the reference for the Tangguh LNG price.
The gas price will escalate by 12 percent-14.5 percent by phases starting 2014 until 2032.
The government wants the price of Tanggug LNG is lower than the level agreed by PLN and BP.
Earlier head of the oil fuel and gas division of PLN Suryadi Mardjoeki said PLN hope the price of LNG from Tangguh is lower than already agreed with BP.
Suryadi hopes that the government would interfere in the price agreement.
He said the price agreement between PLN and BP Berau Ltd is provisional .
PLN hopes that price agreement on Tangguh gas for Arun could be signed this month or next month, he said.
Agreement is already reached that BP Berau Ltd would provide 12 cargo of LNG per year in 2013-2017 and 18 cargoes a year in 2018-2032. A cargo of LNG is around 55,000 tons.
In addition, there are an option of addition to 24 cargoes after the third production facility of Tanggug LNG plant come on line.
(Uu.AS/H-ASG/O001)
Editor: Priyambodo RH
Copyright © ANTARA 2012
