Is Tohoku Electric’s Move to Buy Tangguh LNG a Good One?
Tohoku Electric Power, Japan's fourth-largest power utility, agreed to buy liquefied natural gas from the BP Plc-led Tangguh project in Indonesia, boosting purchases from the world's second-biggest LNG exporter.
Tohoku signed an agreement to buy 120,000 metric tons a year starting in 2010 under the 15-year contract, it said in a statement on its Web site. The utility, based in northern Japan, has another agreement to buy 830,000 tons from Indonesia's Arun plant in Aceh province under a contract that expires next year.
Tangguh has sold out its entire 7.6 million tons-a-year capacity to buyers in China, the U.S. and South Korea, BP said on its Web site. BP may divert half of the 3.7 million tons a year committed to U.S.-based Sempra Energy to other customers, Octavio Simoes, vice president of Sempra LNG, said in June.
Indonesia's third LNG project has been stalled for three years until 2009 because of delays in getting approvals, according to the BP Web site and a presentation in February.
BP had made an initial commitment in 2004 to supply 1.35 million tons from Tangguh to Korean utilities K-Power Co. and SK Corp. from 2006.
Tohoku, which signed an initial agreement with Tangguh last year, did not comment on whether supplies would be diverted from Sempra. A BP representative in Indonesia did not answer calls.
Tohoku bought 3.19 million tons of LNG for the year ending March 2008 from Malaysia, Australia, Qatar and Indonesia, the company said on its Web site. Two new multiyear contracts for a combined 920,000 tons of the fuel with Russia's Sakhalin project and Australia's North West Shelf venture may start in 2010.
BP owns 37.16 percent of the $5 billion Tangguh project, making it the biggest single investor, while Hong Kong-based Cnooc Ltd, which has agreed to buy 2.6 million tons of LNG from the site, is the second largest with a 13.9 percent stake.
Japanese companies, including Nippon Oil Corp. and trading house Mitsubishi, own 45.8 percent, and Talisman Energy Inc. owns
3.06 percent.
It Seems That the Tangguh Project Has Brought In A lot of Foreign Investments. Will This Help Boost Indonesia’s Economy?
Tohoku Electric Power, Japan's fourth-largest power utility, agreed to buy liquefied natural gas from the BP Plc-led Tangguh project in Indonesia, boosting purchases from the world's second-biggest LNG exporter.
Tohoku signed an agreement to buy 120,000 metric tons a year starting in 2010 under the 15-year contract, it said in a statement on its Web site. The utility, based in northern Japan, has another agreement to buy 830,000 tons from Indonesia's Arun plant in Aceh province under a contract that expires next year.
Tangguh has sold out its entire 7.6 million tons-a-year capacity to buyers in China, the U.S. and South Korea, BP said on its Web site. BP may divert half of the 3.7 million tons a year committed to U.S.-based Sempra Energy to other customers, Octavio Simoes, vice president of Sempra LNG, said in June.
Indonesia's third LNG project has been stalled for three years until 2009 because of delays in getting approvals, according to the BP Web site and a presentation in February.
BP had made an initial commitment in 2004 to supply 1.35 million tons from Tangguh to Korean utilities K-Power Co. and SK Corp. from 2006.
Tohoku, which signed an initial agreement with Tangguh last year, did not comment on whether supplies would be diverted from Sempra. A BP representative in Indonesia did not answer calls.
Tohoku bought 3.19 million tons of LNG for the year ending March 2008 from Malaysia, Australia, Qatar and Indonesia, the company said on its Web site. Two new multiyear contracts for a combined 920,000 tons of the fuel with Russia's Sakhalin project and Australia's North West Shelf venture may start in 2010.
BP owns 37.16 percent of the $5 billion Tangguh project, making it the biggest single investor, while Hong Kong-based Cnooc Ltd, which has agreed to buy 2.6 million tons of LNG from the site, is the second largest with a 13.9 percent stake.
Japanese companies, including Nippon Oil Corp. and trading house Mitsubishi, own 45.8 percent, and Talisman Energy Inc. owns
3.06 percent.
It Seems That the Tangguh Project Has Brought In A lot of Foreign Investments. Will This Help Boost Indonesia’s Economy?
posted by Charltonmedia.com @ 2:21 AM
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