BP Signs LNG Supply Deal with Indonesian Utility PLN

BP has signed a contract to supply LNG to Indonesian power utility Perusahaan Listrik Negara (PLN), news agency Reuters reported Friday.

The fuel will be sourced from its Tangguh project in West Papua. Under the contract, BP will supply PLN with 20 LNG cargoes per year from 2017 to 2019, and 44 cargoes per year from 2020 to 2033, Reuters reported.

"Today is a major milestone, a positive step in progress of Tangguh Train 3 expansion," BP Asia Pacific president Christina Verchere told reporters.

With the signing of this contract, all of the cargoes from BP's Tangguh Train 3 project are now committed to buyers, Zikrullah, an official from Indonesia's upstream oil and gas regulator (SKKMigas) said at the contract signing event.

Final investment decision on the project is expected in June, Zikrullah said.