Arun seeks 3 overseas spot LNG cargoes this semester

Indonesian upstream oil and gas authority BP Migas said Tuesday that Indonesia would buy three cargoes of LNG this semester to make up for supply shortage from Arun LNG in Aceh.

BP Migas vice-chairman Karadaya Warnika told Petromindo.Com Wednesday that Arun LNG was actually 6 cargoes short this semester, but buyers had agreed to cut three cargoes, leaving Arun with obligation to buy three cargoes from overseas suppliers, as Bontang LNG had no spare capacity to make up for Arun shortage this semester. Kardaya did not say who the buyers were. He added that talks with overseas LNG producers are underway, but he did not give further detail.

Arun is cutting LNG production to allocate more natural gas supply to Aceh fertilizer makers, which are scrambling for gas.

A Kogas official, who is one of Arun?s LNG buyers, had earlier said that Arun had been asking for cargo shipment rescheduling. Kogas has two long-term contracts to buy 3.3 million metric tons, or 60 cargoes, a year of LNG from Arun .

Each cargo is approximately 55,000 metric tons, or 125,000 cubic meters.

PT Arun NGL plans to produce 109 LNG cargoes this year, down from 114 in 2003 and sharply down from a peak of 224 shipments in 1994, Arun plant officials said. (godang)