Indonesia is negotiating terms to supply liquefied natural gas to a Mexican terminal
Indonesia is negotiating terms to supply liquefied natural gas to a Mexican terminal by July, and also is working on a deal to ship LNG to a California plant, being now in project.
Djoko Harsono, head of marketing for the Indonesian government agency BPMIGAS, said the contract to supply super-cooled LNG to a Mexican terminal planned by Sempra Energy and Shell could set a floor and ceiling price for the fuel, and offer both sides the option of diverting cargoes to other locations.
"Our target is the first of July at the latest," Harsono told journalists on the sidelines of an energy conference.
The 20-year contract calls for BP Plc to deliver 500 million cubic feet of LNG per day produced from the Tangguh field to the Ensenada terminal in Baja California beginning in 2007. It could be worth $700 million a year in revenue to the seller.