Indonesia's energy watchdog, BPMigas, has signed a liquefied natural gas (LNG) supply deal with Japan's Chubu Electric Power amounting to 2 million tonnes by 2015.

Indonesia, the world's third-biggest LNG exporter, would supply 250,000 tonnes annually between 2011 and 2012 and 500,000 tonnes per year from 2013 to 2015, BPMigas spokesman Amir Hamzah said, according to a Reuters report.

Separately, BPMigas chief Priyono, who has only one name, said the LNG was set to come from the Tangguh project in Papua province, and was to be part of the LNG lifted by US outfit Sempra Energy and sold to other customers.

"We have signed the deal and we will get a good LNG price from Chubu," Priyono told reporters.

Sempra has a 20-year contract to lift 3.6 million tonnes per year (tpy) of LNG from the 7.6 million-tpy Tangguh project, led by BP . It has the right to divert half its volume to customers other than its own new terminal in Mexico.

"BPMigas is also in talks to supply LNG from the Tangguh plant to domestic receiving terminals in North Sumatra and West Java," Priyono said, but gave no further details.

Indonesia, has been counting on Tangguh to help make up for declining production at other projects.

The plant in the remote Papua province in eastern Indonesia is the country's third LNG production centre.

(upstreamonline.com Mar. 2010)