Pertamina assigned to sell LNG to S.Korea, Taiwan
Pertamina assigned to sell LNG to S.Korea, Taiwan
Fitri Wulandari, The Jakarta Post, Jakarta
The Oil and Gas Implementing Body (BP Migas) has appointed
state oil and gas company PT Pertamina as the sole agent to
market Indonesian liquefied natural gas (LNG) to South Korea and
Taiwan.
Agency head Rachmat Sudibyo, said on Thursday that production-
sharing contractors had agreed, in principal, to appoint
Pertamina to market their LNG to South Korea and Taiwan.
"We are finalizing terms and conditions for the appointment
(of Pertamina as sales agent) with LNG producers such as Total,
Unocal, Vico and BP Indonesia for Tangguh," Rachmat said after a
hearing with House Commission VIII for mines and energy.
Pertamina will be assigned to negotiate the extension of
existing LNG purchase contracts, as well as to find new buyers
from both countries, Rachmat said.
Indonesia has contracts with South Korea's Korea Gas (Kogas)
and Taiwan's China Petroleum Company, which are scheduled to
expire in 2007 and 2009 respectively.
Indonesia is one of the largest LNG exporters in the world. It
has two LNG plants, located in East Kalimantan's Bontang and
Aceh's Arun, with a combined capacity of 31 million tons per
annum.
South Korea and Taiwan are respectively the second and third
largest LNG markets for Indonesia after Japan. LNG exports to
South Korea and Taiwan make up 19 percent and 13 percent
respectively of Indonesia's total exports of 27 million tons per
annum. The bulk of LNG exports goes to Japan.
BP Migas added it is also in the process of negotiations to
export an additional 50 million cubic feet per day (MMSCFD) of
natural gas to Singapore.
"Singapore has asked for more natural gas supply since last
year," Djoko Harsono, the head of BP Migas' marketing division
said.
According to him, the natural gas would be supplied through
pipelines from Natuna island for a period of 12 years. The
additional supply would provide an estimated revenue of $770
million for Indonesia.
Indonesia now supplies Singapore with natural gas from west of
the Natuna islands and central Sumatra through pipelines.