Govt signs new gas contracts<\/p>\n
Indra Harsaputra, Surabaya<\/p>\n
The government signed US$4.3 billion worth of liquefied natural
\ngas (LNG) sales agreements with several international and local
\noil and gas companies on Friday.<\/p>\n
The Upstream Oil and Gas Implementing Body (BP Migas) said
\nthat the agreements covered the sales of 1.7 trillion cubic feet
\nof natural gas.<\/p>\n
State-owned gas distribution company PT Perusahaan Gas Negara
\n(PGN) is set to buy gas from ConocoPhilips and PT Medco Energi
\nInternasional to meet demands in West Java and Batam.<\/p>\n
BP Plc. will sell gas to local fertilizer company PT Pupuk
\nKujang, while Amerada Hess extended a gas sales contract with
\nchemical company PT Petrokimia Gresik.<\/p>\n
With the signing of these contracts, BP Migas claimed that it
\nhad managed to coordinate a total of 35 gas sales contracts
\ndomestically within the last two years, with a total volume of
\n8.4 trillion cubic feet, valued at $22 billion.<\/p>\n
Also on Friday, the government signed three Memorandum of
\nUnderstanding (MOU) agreements on LNG sales with three Chinese
\ncompanies: First China Petroleum, Sino-Cher, and China Chemical
\nCorp.<\/p>\n
BP Migas chief Rachmat Sudibyo said that each company would
\nbuy between 1 trillion to 3 trillion cubic feet of gas. No
\nfurther details were provided.<\/p>\n
Minister of Energy and Mineral Resources Purnomo Yusgiantoro
\nsaid that Indonesia had yet to manage its 140 trillion cubic feet
\nof gas reserves.<\/p>\n
\"We've just managed around 80 trillion cubic feet of natural
\ngas. The government will put in its best effort to boost
\ninvestment in the oil and gas sector,\" he said.<\/p>\n
Indonesia is trying to increase its gas sales to China as BP
\nPlc.'s contract with China's Fujian province -- to sell 2.6
\nmillion metric tons of LNG per year from 2007 for 15 years -- is
\nconsidered not economical enough to support the development of
\nBP's Tangguh project in the West Papua province, analysts have
\nsaid.<\/p>\n
Being the world's sixth largest natural gas producer,
\nIndonesia is also aiming to sell its LNG to new markets,
\nincluding the United States West Coast and Mexico.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-signs-new-gas-contracts-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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