09-07-08 The Upstream Oil and Gas Regulatory Body BP Migas said the selling price of liquefied natural gas (LNG) from Tangguh, Papua, will be based on the prevailing market price, an official said. The first shipment to contract buyers of LNG from Tangguh, which is operated by BP, is expected by the end of this year.
"The crude oil price in the world market has risen to $ 150 a barrel, therefore, the LNG price must be revised based on the prevailing price," Eddy Purwanto, a deputy chief of BP Migas said.

There are at least four contract buyers of Tangguh LNG including CNOOC of Fujian, China, Sempra from the United States, K-Power and Posco from South Korea.
The price agreed upon with CNOOC when the contract was signed in 2002 was $ 2.4 per mm Btu based on the crude oil price of $ 25 a barrel at that time. BP Migas chief R. Priyono said price negotiations with buyers are now underway.