Sempra to buy Indonesia gas from BP for North America

Sempra Energy LNG said Oct. 12 that it signed a 20-year agreement to purchase 3.7 million tons of liquefied natural gas per year from Indonesia for its proposed terminal just south of the U.S. border from BP PLC and its partner Tangguh LNG.

The unit of energy services holding company Sempra Energy said the first shipment from Tangguh’s Indonesian liquefaction terminal to the Energia Costa Azul LNG receipt terminal in Baja California, Mexico, is expected to arrive in 2008.

Pricing of the LNG will be tied to the SoCal border index for natural gas, Sempra said.

The company said the agreement allows for further development of the Mexican receipt terminal. Construction contracts will be signed by year-end with operations expected to begin in early 2008.