Govt may buy LNG from Oman to meet export contracts

Government is seeking 600,000 metric tons of liquefied natural gas from Oman as the Asian nation tries to meet supply contracts in the face of declining production in the world?s largest exporter of the fuel.

Buyers in Japan, South Korea and Taiwan are at risk of not receiving all of their Indonesian LNG, said Ari Soemarno, head of PT Pertamina, state-owned oil company.

?We have been in talks with Oman. We are asking them to help us so we won?t fall short in supplying LNG to our buyers,? he told reporters in Jakarta Friday.

Government has reduced shipments of LNG by 10 percent in the past two years as fields in Kalimantan, operated by Chevron Corp and a venture owned by BP Ple and Eni SpA, have failed to meet production targets, The Jakarta Post reported Saturday.

?Oman has a capacity of 10.5 million tons a year. About 600,000 tons of which is the government entitlement that has no buyers yet,? Soemarno said, ? We must seek alternative sources so our buyers won't get in trouble Government is also seeking LNG from Qatar.

Soemarno declined to disclose when the talks may conclude or when the purchase may occur. He spoke to reporters after joining a meeting between Vice President Jusuf Kalla and Oman?s oil and gas minister Mohammed al-Rumhi in Jakarta.

Oman intends investing in Indonesia?s coal mines, given that coal is an economical source of energy and technology is available to turn into a clean fuel, Soemarno said.

Oman is also interested in Indonesia?s petrochemical sector, he said.

Government is interested in buying oil products, including gasoline from Oman, Soemarrio said. ?We discussed this during today?s meeting. Pertamina will follow it up.? (*)