BP Receives LOI for Tangguh LNG

In a major step forward for the Pertamina and BP operated Tangguh LNG Project in eastern Indonesia, Pertamina has signed a Letter of Intent for delivery of 1.3 mtpa of LNG to GNPower of the Philippines. GNPower is a Manila-based private company, one of whose affiliates is the developer and part owner of the Quezon Power Philippines project.

The LOI provides for an exclusive period for Pertamina and GNPower to negotiate the supply of LNG from the Tangguh field, thus enabling GNPower to respond fully to any Independent Power Producer (IPP) opportunities for that company. The details of the LOI remain confidential at this stage.

Pertamina is very pleased with this, Tangguh's first LOI, which marks the confidence of an experienced IPP developer in the ability of Tangguh to deliver competitive long-term supplies of LNG.

Pertamina partner in the project, BP Indonesia, also welcome the LOI. BP pledges to continue to work hard with Pertamina to quickly secure LOIs for the other opportunities that both parties are currently pursuing. BP is confident of success, as future customers see the commitment of the Indonesian Government, Pertamina and the Province of Irian Jaya (Papua), along with BP and its partners, to successfully develop Tangguh.

Government of Indonesia views the agreement as an important breakthrough for Tangguh which they consider strategically important for the country. LNG is an important part of Indonesia's future energy business. The Government of Indonesia is believes that the LOI will further strengthen the good cooperation between Indonesia and the Philippines

GNPower expressed their appreciation for Pertamina's support: The Philippines and Indonesia are close not only geographically but also culturally. Pertamina is playing a vital role in bringing competitively priced power to the Filipino people by supporting potential IPP opportunities.