INDONESIA DRIVING TO BOOST LNG EXPORTS

Indonesia is pushing its campaign to step up shipments and retain its title as the world's No. 1 exporter of liquefied natural gas. Faisal Abdaoe, president of state owned Pertamina, told newsmen in Jakarta Indonesia's LNG exports will total 20.7 million tons this year, then rise to 21.7 million tons in 1991 and 24 million tons/year by 1994. The occasion was a signing ceremony for a contract in which Pertamina agreed starting in 1994 to ship another 2 million tons/year of LNG for 20

Nov. 19, 1990

2 min read

Indonesia is pushing its campaign to step up shipments and retain its title as the world's No. 1 exporter of liquefied natural gas.

Faisal Abdaoe, president of state owned Pertamina, told newsmen in Jakarta Indonesia's LNG exports will total 20.7 million tons this year, then rise to 21.7 million tons in 1991 and 24 million tons/year by 1994.

The occasion was a signing ceremony for a contract in which Pertamina agreed starting in 1994 to ship another 2 million tons/year of LNG for 20 years to Osaka Gas, Tokyo Gas, and Toho Gas, three of Japan's major LNG importers (OGJ, Nov. 5, p. 31).

Under earlier contracts, Indonesia shipped 16.5 million tons of LNG to Japan, 2 million tons to South Korea, and 1.5 million tons to Taiwan last year.

The additional LNG to be supplied to Japan will come from Bontang, East Kalimantan, where Pertamina will add a production train with design capacity of 2.3 million tons/year. In cooperation with foreign oil and gas companies, Pertamina currently operates five LNG trains in Bontang and six in Arun, Aceh.

The new train at Bontang will cost $637 million to be obtained in the form of loans. Eight companies from Japan, the U.S., and France have shown interest in providing required credits, Abdaoe said.

Pertamina also is negotiating a short term and a long term contract to sell Korea Gas Co. 44 million tons of LNG during 21 years.

Talks also are under way on an agreement to ship Singapore 140 MMcfd of LNG for 15-20 years from Block D in Natuna field.

There also are plans to increase Indonesia's LNG shipments to Taiwan by at least 700,000 tons/year, Abdaoe said.