Arun LNG buyers reluctant to sign 2002 contract

The LNG (liquefied natural gas) buyers of PT Arun NGL Co. are still unwilling to sign 2002 purchase contract until the company can prove to be able to deliver November and December contracts, according to an official at the state-owned oil and gas firm Pertamina.

Director for production sharing management at Pertamina Effendi Situmorang was quoted by the Bisnis Indenesia daily as saying that Pertamina and Arun were working hard to be able to fulfill the November and December contract.

He said that if Arun failed, it would loss a significant market in 2002.

The Aceh-based Arun stopped delivering LNG to its foreign buyers in April this year after ExxonMobil Indonesia halted the production of gas, raw material for Arun?s LNG production, due to security threat in the troubled province. Production has resumed recently.

Arun has the obligation to deliver eight cargos of LNG to Japan?s Tohoku Electric Power Co, and South Korea?s Kogas. In December, Arun must ship nine cargos to Tohoku, Tepco, and Kogas.

In 2002, Arun is expected to deliver some 108 cargos of LNG, a decline compared to 116 this year.(*)