RI to export more LNG to S. Korea

RI to export more LNG to S. Korea

The state-owned oil company Pertamina said on Wednesday it was looking to export more liquefied natural gas (LNG) to South Korea.

"Pertamina has been (told South Korea needs) more LNG supply from 2006. The amount is between four to six million tons annually," Pertamina president director Baihaki Hakim told reporters.

"I am realistic that Pertamina may be not get (all) that additional amount but we will struggle to market our LNG to South Korea," he said.

Pertamina is already the largest LNG supplier to South Korean state firm Korea Gas at a total of around 5.3 million tons annually.

A Korea Gas contract for 2.3 million tons annually of LNG from Pertamina ends in 2007, one for two million tons a year expires in 2014 and another for one million tons a year ends in 2017.

"We understand that there is a privatization process in South Korea that could open more markets. This is big potential market to Pertamina and we are looking for that opportunity to export more LNG," Hakim said.

South Korea has set plans to spin off the state-run Korea Gas's wholesale and import division into three entities and then privatize two of the units.

South Korea is the world's second largest LNG importer after Japan. It buys over 90 percent of its requirements through long- term pacts and the rest through spot deals.

Indonesia is the biggest LNG exporter in the world with more than 23 million tons annually to Japan, South Korea and Taiwan. -- Reuters