The government to Renegotiate LNG Tangguh Price with South Korea

Following the success of renegotiate the price of LNG Tangguh to China, the government also intends to renegotiate the price of LNG to South Korea, which is K-Power and Posco.


In the 20-year tenured contracts, LNG prices for both companies is USD 4.1 / MMBTU with a total sold volume of 1 million tons/year, which is distributed by the same amount to the two companies.


The government's efforts at this time is to raise the price of LNG to USD 8 / mmbtu. The challenge was very hard. One of the employees of SKK Oil and Gas stated, not like the treaty with China, there is no clause of price change with the South Korea. (Bisnis Indonesia)


for Indonesia Market Summaries 2 July 2014