6 mtpa of LNG available for domestic buyers: Rudi

By Godang Sitompul

LNG reserve up for grabs for local buyers will increase by approximately 6 million tons per annum (mtpa) from 2013 through 2018, Vice Minister of Energy and Mineral Resources Rudi Rubiandini said on Friday.

The volume includes the amount of LNG now being delivered by the Bontang LNG plant in East Kalimantan to South Korean firm Korea Gas Corporation (Kogas) whose contract expires during the period; the amount of LNG that the Tangguh LNG plant in West Papua can divert from American buyer Sempra Energy and the volume of LNG from the planned Train 3 in Tangguh allocated for the domestic market.

?There will be an additional LNG reserve amounting to 6 mtpa or 1,000 mmscfd (available for local buyers) as a consequence of the end of Kogas contract, the diversion of Sempra gas, an additional output from Tangguh?s Train 3,? Rudi said.

Investors that want to build smelters in Indonesia may use the gas, Rudi said, adding that the additional LNG reserve is more than enough to meet the energy needs of a smelter.

?A smelter needs around 300-400 mmscfd. But please note that the price of the LNG will not be similar to PGN?s price,? he said.

He said around 40 percent of the production capacity of the planned Train 3 of Tangguh will be allocated for the domestic market.

Editing by Johannes Simbolon