BPMIGAS in talks with Mid East suppliers, buyers for spot LNG cargoes

Upstream oil, gas authority BPMIGAS said it is in talks with several Middle East LNG suppliers and East Asian buyers to procure 9 cargoes of LNG in 2009 to enable Arun NGL to supply gas to Aceh fertilizer plant PT.Pupuk Iskandar Muda (PIM).

BPMIGAS Deputy Chairman Djoko Harsono did not give detail about the producers? name, but said it was also in talks with Indonesian LNG buyers to cancel their cargoes. Indonesian LNG buyers are Japanese firms, South Korea?s Kogas and Taiwan?s TaiPower.

?We hope to be able to secure the supply this month,? he told reporters.

Under the swap scheme, ExxonMobil Oil Indonesia (EMOI), which operates gas fields in Aceh, will cut supply to Arun equal to 9 cargoes in 2009 and deliver the gas to PIM. Government will then buy 9 cargoes of LNG in international market and deliver them to Arun?s customers.

Djoko also said EMOI will start gas supply to PIM this week to enable the plant?s first unit to resume operations. Other unit will get supply in July 2009, he said.(Bernard)