Hungary seeks LNG from Indonesia

The Hungarian government, as part of a wider effort to diversify the country's energy sources away from Russia, has approached Indonesia seeking LNG supply purchases.

Eric Watkins
Senior Correspondent

LOS ANGELES, June 18 -- The Hungarian government, as part of a wider effort to diversify the country's energy sources away from Russia, has approached Indonesia seeking LNG supply purchases.

Hungarian Economcs and Transport Minister Janos Koka made the request of Indonesia's Trade Minister Mari Elka Pangestu, saying supplies from Indonesia could be shipped to an LNG terminal under development by his country and Croatia.

Koka said the two sides would "touch on this further in October" during his visit to Indonesia. Meanwhile, Mari said she would discuss the request with Jakarta's ministries.

Hungary's request follows earlier efforts to increase gas supplies ahead of pending liberalization of Hungary's gas market.

In May, Hungarian oil and gas company MOL Nyrt said it was considering expanding capacity along the domestic stretch of the 'Friendship' gas pipeline that carries Russian gas to Europe via Ukraine.

According to a report in the daily Nepszabadsag citing MOL Nyrt sources, the expansion would increase capacity to 10 billion cu m by increasing Russia's gas supply until other supply routes come on line by 2015.

The move is aimed at ensuring sufficient capacity available to new market entrants following liberalization on the gas market in 2008, according to MOL Nyrt, which earlier announced plans to enter the liberalized gas market in Hungary.

In May MOL Nyrt announced plans to team with ExxonMobil Corp. to undertake a joint survey of "unconventional" gas resources in Hungary.

Contact Eric Watkins at hippalus@yahoo.com.

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