China may allow Indonesia to raise the price of liquefied natural gas
China may allow Indonesia to raise the price of liquefied natural gas (LNG) from the US$5 billion, BP-led Tangguh project, but the world's second-largest energy consumer ruled out any major increases.
"We understand the global LNG market has recently shifted to a seller's market from a buyer's market," said an official at China National Offshore Oil Corp. (CNOOC Group), which inked a deal in 2002 to import 2.6 million tons a year from Tangguh over 25 years.
The Tangguh agreement leaves room for further price negotiations, he said.
"We are negotiating. But producers should not over-estimate the affordability of a developing country like China," the official, who asked not to be identified, said.