Chubu to Pay More Than Sempra for Tangguh LNG
March 12, 2010
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Chubu Electric Power has agreed to pay about $12.50 per million British thermal units for liquefied natural gas originally allocated to Sempra Energy from the BP-led Tangguh project, more than what the US company had offered.
Japan’s third-biggest utility plans to buy 250,000 metric tons a year in 2011 and 2012 and 500,000 tons annually from 2013 to 2015 for a total of two million tons, upstream energy regulator BPMigas announced on Wednesday.
Indonesia is selling part of the supplies dedicated to Sempra to Chubu at a higher price. Sempra’s contract price was based on a pricing point for natural gas supplies to Southern California, which traded at $4.75 per mmbtu on Tuesday.
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