Perusahaan Listrik Negara (PLN) of Indonesia signed a 19-year deal with BP to buy LNG from the Tangguh plant in West Papua.
This deal is one out of five natural gas agreements for domestic supply that Indonesia signed on Friday.
These agreements are expected to increase state revenues by up to $10.5 billion.
“This is the biggest gas sales agreement in history for the domestic market,” Indonesia’s energy regulator SKK Migas said.
The BP Tangguh-PLN deal will supply Indonesia with an estimated 400 cargoes of LNG over the contract duration, according to a report by Reuters.