Government to set joint marketing team for the country?s LNG

The government will set up a joint marketing team that will be responsible in marketing the country?s liquefied natural gas (LNG) in overseas markets, Minister of Energy and Mineral Resources Purnomo Yusgiantoro has said.

"We hope, the team can handle the LNG marketing early next year. We are still building Indonesia Incorporation in the sales of LNG," the minister was quoted by Koran Tempo daily in its Wednesday edition.

According to Purnomo, the joint team will comprise of Pertamina, BP-Migas, and the Ministry of Energy and Mineral Resources. The daily did not say why none of LNG producers is included in the team.

In the past Pertamina solely handles the marketing of the country?s LNG production but the introduction of the new oil and gas law early this year which will gradually remove the state oil and gas company?s monopoly and supervisory task in the gas and oil industry has encouraged LNG producers to demand for more say in the marketing of their LNG production.

BP Indonesia, which is now preparing for the construction of a massive LNG plant in Papua, has for example demanded the government that it handles the marketing of its LNG. The company was entrusted to handle the marketing of its LNG to Chinese province of Quangdong recently. Although the company failed in the tender it still wants the marketing of its future LNG production to be handled by its own marketing team. (*)