Tepco plans to lift LNG cargo from Arun

Tepco plans to lift LNG cargo from Arun

TOKYO (Dow Jones): Tokyo Electric Power Co., or Tepco, said Wednesday that it plans to lift a liquefied natural gas cargo of about 55,000 metric tons from Indonesia's Arun terminal Aug. 18.

It will be the first LNG export from Arun since the shutdown of natural gas fields at the site mid-March due to security concerns in Aceh province.

Tepco imports 510,000 tons a year of Arun LNG on a free-on- board basis under a long-term contract with Indonesia's state- owned Pertamina.

Unlike Tohoku Electric Power Co., another Japanese lifter of Arun LNG, Tepco didn't seek alternative LNG in the wake of the supply disruption, as its term volume isn't large, a Tepco spokesman said.

Tohoku Electric, which buys 3 million tons a year of Arun LNG, said Wednesday that it hasn't yet set a date for the resumption of Arun imports as the company is awaiting a firm offloading schedule by Pertamina.

"Pertamina told us they are prepared to offer a total 3 cargoes in August and 4 cargoes in September (to its term lifters) if everything goes smoothly," a spokesman for Tohoku Electric said. One LNG cargo typically contains 57,000-60,000 tons.

Tohoku Electric, which serves the northern part of Japan's main island, has so far secured alternative LNG cargoes from other supply sources, mainly from Bontang in East Kalimantan, Indonesia and Malaysia to cover its requirements to the end of September.