Renegotiating All the Way to China
Two South Korean companies agree to purchase gas from Tangguh at a higher price than originally agreed. China’s purchase price is still low. The price of gas should follow the fluctuations in the price of crude oil.
July 7, 2009
THERE was a wide smile spread across the face of the head of the Oil & Gas Upstream Executing Body (BPH Migas) R. Priyono last week. The many measures taken by BPH Migas over a period of almost four years to renegotiate the sales contract of liquefied natural gas (LNG) from Tangguh to South Korea have eventually borne fruit. Pohang Iron Steel Company (Posco) and K-Power are now prepared to raise the purchase price of gas from Bintuni Bay, Papua,
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