JAKARTA (Yosefardi) – The government of Indonesia and China-based Fujian has made a deal on new gas prices from Tangguh, Papua.
The new gas price will be implemented per July 1, 2014. Both parties have agreed to increase gas price to US$8 per million british thermal unit (mmbtu) from current US$2.7 per mmbtu.
Tangguh gas field is operated by British Petroleum (BP) since 2002 and the gas is exported to Fujian as the main buyer and also to United States.
The gas price, under the agreement, is subject to current price of Japan Crude Cocktail (JCC) which now hovers at US$100 per barrel.
The contract will expire by 2034 and the gas price could be hiked further to US$13.3 per mmbtu by 2017 along with the further rise of JCC.