BPMIGAS wants ?added value? from foreign LNG buyers

By Alexander Ginting

Upstream authority BPMIGAS Chairman R. Priyono said that despite prioritizing LNG supply for domestic needs, windows are still very much open for export, particularly for foreign buyers who have the ability to offer ?added value? to the country in addition to merely the LNG price itself.

"We will sell LNG to those who offer investment, technology transfer or industry relocation to Indonesia," he said when addressing the LNG Forum, a gathering of Indonesia LNG buyers organized by BPMIGAS in Bali on Thursday.

He added LNG should no longer be treated as just a commodity, but rather as a means to support economic growth.

BPMIGAS will put that concept into practice for instance, by selling the LNG only to buyers who are willing to develop geothermal projects in Indonesia, or those who are committed to relocating some of their industry in need of gas supply to Indonesia.

To achieve that, Priyono said the negotiation will be first carried out on a G-to-G level. Preliminary talks over such scheme have been underway with a number of Japanese customers, supported by the Japanese government via JBIC.

At present, Indonesia is developing a number of large LNG projects, including Masela LNG, IDD and Muara Bakau which will add supply capacity to Bontang LNG plant in Kalimantan and Tangguh LNG expansion project in West Papua.

Editing by Dadan Wijaksana