BP Migas needs to map Indonesia?s LNG export capacity: Pertamina

Indonesia needs to map out its LNG export capacity in order to bring certainties to buyers and to avoid the country from being blamed as giving promises to buyers that it cannot fulfill, Bisnis Indonesia reported on Monday.

The statement was made by state oil and gas company PT Pertamina Ari M. Sumarno over the weekend in wake of the reports that Indonesia will again not able to meet its LNG export commitment to buyers this year.

The responsibility to map out the LNG export capacity lies with BP MIGAS which, as the highest authority in the country?s oil and gas upstream sector, is supposed to well know the production of the Arun and Bontang LNG plants as well as the gas reserves of the fields that supply the plants, Ari said.

The Arun LNG plant in Aceh is supplied with gas from American energy giant ExxonMobil?s fields, while the Bontang plant in East Kalimantan is supplied with gas by several gas producers, including French firm Total E&P Indonesie.

Gas reserves at ExxonMobil?s fields have much depleted, but East Kalimantan?s fields that supply the Bontang plant are believed to still contain a lot of gas but the owners are reluctant to further exploit the gas due to the uncertain future market following the protracted negotiation with Japanese buyers to extend the existing contracts that will end in 2010.

Indonesia has failed to meet its LNG export commitment to buyers in Japan, South Korea and Taiwan for several years, including this year.

For this year, Pertamina, which is assigned to market LNG from Bontang and Arun, said last week that Indonesian LNG export shortfall will reach 79 cargoes and the shortfall is expected to further increase in the coming years.

?We don?t only want to know how much the exports will be decreased next year. But we ask BP MIGAS to map out Indonesia?s LNG export capability until 2010, not only for next year or next two years,? Ari said, adding that such a map will help Indonesia in negotiations to cut exports to buyers.

President Susilo Bambang Yudhoyono has said that Indonesia would not extend its existing contracts with LNG buyers as Indonesia would use the fuel to meet the growing needs of gas in the domestic market. (*)