Arun lowers LNG export target

The North Aceh-based LNG producer PT Arun LNG & Co has lowered this year’s LNG export target to 102 ships from 109 ships as earlier planned due to the lack of gas supply, Bisnis Indonesia reported on Monday.

Irwandar, the spokesman for PT Arun, said in Jakarta late last week that the government had decided to divert part of the gas supply from PT ExxonMobil Indonesia (which supplies gas to Arun) to local fertilizer PT Pupuk Iskandar Muda.

“Korea and Japan as the main buyers have agreed with the decline in the export by between six and seven shipments this year. They have also agreed to get the LNG deficit in 2005,” he added.

ExxonMobil have recently cut its gas supply to PT Asean Aceh Fertilzier, PT Pupuk Iskandar and PT Kertas Kraft Aceh because the existing gas production is only enough to meet Arun’s export commitment.

However, the government demanded last week the company to resume the gas supply to PT Pupuk Iskandar Muda, which produces fertilizer for domestic market.

Irwandar said that PT Arun’s realized LNG export for January and May period reached 45 ships or equivalent to 2.5 million tons. (*)