Pertamina slated to ship more LNG to South Korea

Aug. 21, 1995
Indonesia's Pertamina plans to step up shipments of liquefied natural gas to South Korea. A contract with Korea Gas Co. calls for deliveries of 1 million tons/year of LNG for a 20 year period starting in 1999. The fuel will come from Train H in Pertamina's Bontang liquefaction plant in East Kalimantan, boosting shipments of Indonesian LNG to South Korea to 6.3 million tons/year. The agreement is the second long term LNG sales contract Pertamina signed with buyers this month. It earlier

Indonesia's Pertamina plans to step up shipments of liquefied natural gas to South Korea.

A contract with Korea Gas Co. calls for deliveries of 1 million tons/year of LNG for a 20 year period starting in 1999. The fuel will come from Train H in Pertamina's Bontang liquefaction plant in East Kalimantan, boosting shipments of Indonesian LNG to South Korea to 6.3 million tons/year.

The agreement is the second long term LNG sales contract Pertamina signed with buyers this month. It earlier signed two contract extensions with Japanese customers.

Construction of Bontang gas liquefaction Train H calls for an outlay of about $900 million. Financing of the project is not wrapped up.

Indonesia is the world's No. 1 exporter of LNG, shipping as much as 26.3 million tons/year, or about 40% of international sales. Most of its LNG goes to consumers in Japan, South Korea, and Taiwan under long term contracts.

Indonesia's LNG shipments will take a big jump as a result of Esso Exploration & Production Natuna Inc.'s plan to tap giant Natuna gas field off Natuna Island.

Field development and an LNG export project under an accord among the Exxon Corp. unit, the Indonesian government, and Pertamina could cost as much as $40 billion and add 14 million tons/year of LNG to world supply (OGJ, Nov. 21, 1994, p. 30).

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