Indonesia to import LNG for contracted exports

Aug. 14, 2006
Indonesia's state-run PT Pertamina plans to import 600,000 tonnes/year of LNG from Oman, along with possible purchases from Qatar, to help meet its export contracts with Japan, South Korea, and Taiwan.

Eric Watkins
Senior Correspondent

LOS ANGELES, Aug. 14 -- Indonesia's state-run PT Pertamina plans to import 600,000 tonnes/year of LNG from Oman, along with possible purchases from Qatar, to help meet its export contracts with Japan, South Korea, and Taiwan.

"Oman's LNG [plants] can produce 10.5 million tonnes, and they have excessive output of some 600,000 tonnes, said Pertamina president Ari Soemarno on Aug 11. "We ask Oman to sell the excessive output to Indonesia."

Soemarno said Pertamina also has approached Qatar to buy 200,000 tonnes of LNG, and the company is conducting intense talks with Qatari officials.

Even with the additional supplies, however, Soemarno acknowledged that 600,000 tonnes or 10 cargoes would not be enough to cover the shortage for exports to Japan, South Korea and Taiwan. Pertamina has a contract to supply 12 million tonnes/year of LNG to Japan alone.

Soemarno said the shortfall to all three countries amounted to some 75 cargoes or 5 million tonnes/year, including 9 cargoes from Arun in Aceh and 70 cargoes from Bontang in East Kalimantan. He did not offer details of how the remaining cargos would be secured.

Contact Eric Watkins at [email protected].