Govt mulls over new LNG marketing method

The government said on Wednesday it was considering to build offshore liquefied natural gas (LNG) plants and sell the item directly from the facilities, which is a new marketing concept yet to be practiced in the gas industry.

Oil and Gas Implementing Body (BP-Migas) chairman Rachmat Soedibjo said U.S. oil company Unocal was developing the concept, called Floating LNG Market, and had proposed that the government adopt it in the future.

Offshore LNG plants entailed by the method could have 1-2 trains, Rachmat told reporters on the sidelines of a seminar in Jakarta. No investor from any part of the world had built such plants, according to Rachmat.

?The government is studying the concept,? Rachmat said.

Meanwhile, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said on the same occasion LNG from the offshore plants would be sold under short-term contracts.

?We could make bigger profits by practicing this concept,? Purnomo said.

Indonesia might have to use the new LNG production and marketing method so as to cope with rising competition in the LNG market, the official said. (godang)