China asks more LNG supply from Indonesia

China has asked Indonesia to increase its liquefied natural gas (LNG) to the country, which is currently trying hard to raise additional energy supply to meet the fast pace of its economic growth, Bisnis Indonesia reported on Saturday.

Vice Chairman of National Development and Reform Commission, Zhang Guo Bao expressed the request during his meeting with Minister of Energy and Mineral Resources Purnomo Yusgiantoro in Jakarta Friday.

During the meeting the two senior officials agreed to promote cooperation in the energy sector particularly in power generation, oil exploration and LNG production. At present a number of Chinese companies are involved in the construction of coal-fired power plants and oil production.

With regard to the Chinese request for additional LNG, Purnomo said that it would be difficult to meet the request due to the decline in Indonesia's gas production and the increased use of gas for domestic use.

However, Purnomo said that the government is still waiting for the new balance of gas, which expected to be completed next year.

Meanwhile, head of marketing division of the upstream oil and gas regulatory body BP Migas Djoko Harsono said that the shortage of LNG cargoes from Bontang refinery will be reduced to 36 cargoes next year from the 52 cargoes at present. Also, the LNG shortage of 12 cargoes from Arun refinery will be reduced by rescheduling the delivery.

On Nov 2006, Pertamina?s president Ari H. Soemarno said that shortfall in LNG shipment from Indonesia to buyers may slightly decline to between 71-74 cargoes next year, from an estimated 79 cargoes this year.

Shortfall from the Bontang LNG plant could decline to 52 cargoes next year from an estimated 60 cargoes this year and LNG plant in Arun is expected to fall short of its commitment to buyers by between 9 and 12 cargoes next year, Ari said on Nov 1, 2006. (*)