Arun, Tangguh in LNG swap talks

Upstream oil, gas authority BPMIGAS said that Aceh LNG plant Arun NGL is finalizing talks with BP-operated Tangguh LNG over the deal to swap some of the former?s LNG surpluses to the latter?s customers in China and South Korea.

Head of Oil, Gas Utilization Ira Miriawati told Petromindo.Com on Monday that the deal is part of government?s effort to avoid LNG production cut at Arun and Bontang/Badak in East Kalimantan, which experienced surpluses after their East Asian buyers cut demand.

She said Arun cargoes would be diverted to Tangguh?s East Asian buyers in China and South Korea.

She did not give detail about the number of cargoes to be swapped, but Maman Budiman, a senior official at ExxonMobil Oil Indonesia (EMOI) told Petromindo.Com last week that Arun would have three-cargo surplus this year. EMOI is sole gas supplier to Arun NGL.

Tangguh and Bontang has reached similar swap deal and Bontang has shipped two cargoes of LNG to Tangguh?s buyers in China and South Korea, with another one cargo planned to be shipped to Korea on May 24, Badak NGL President Agus Haryanto said on Monday. (godang)