China to Renegotiate Tangguh LNG Price

China has agreed to renegotiate the sale price of Tangguh liquefied natural gas (LNG), Indonesian President Susilo Bambang Yudhoyono said.

"Chinese leaders have agreed to my proposal for renegotiation of the Tangguh LNG sale price so that Indonesia would obtain a bigger share," President Yudhoyono said on Twitter on Wednesday, Antara News reported.

The current price for Tangguh LNG is $3.35 per million British thermal unit (mmbtu). 

The contract, signed in 2006, is a revision from the original 2002 contract with a selling price of $2.40 per mmbtu, Antara said. 

Price formula at the time of the contract was tied with the price of the Japan Crude Cocktail at around $38 per barrel.