OREANDA-NEWS. January 04, 2012. The Upstream Oil and Gas Regulatory Body (BPMigas) expects China to pay USD 5-7 per MMBTU for liquefied natural gas (LNG) supplied from Tangguh LNG in Papua. Rudi Rubiandini, deputy operational control of BPMigas, said LNG export price to Fujian, China should be higher than average domestic gas price of USD 5 per MMBTU.

 "Should be higher than domestic price, which is now around USD 5 per MMBTU. We're in the process of raising domestic gas price to USD 7 per MMBTU, so we hope Tangguh LNG gas price to China between USD 5 and USD 7 per MMBTU," Rudi is quoted.

 The targeted price would still below average LNG export price of USD 10 per MMBTU, while some domestic customers are willing to pay USD 9 per MMBTU.

 The current LNG export price to China is based on a ceiling price of Japan Crude Cocktail (JCC), which was set at USD 38 per barrel or USD 3.35 per MMBTU. This is higher than initial price of USD 2.4 per MMBTU used in contract signed in 2002 when JCC was set at USD 24 per barrel.

 The last quoted price of Nymex crude was USD 98 per barrel.
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