India's GAIL buys one cargo of LNG from Indonesia

Indian firm GAIL (India) Limited has agreed to buy one of the 18 cargoes of LNG from Indonesia that have been rejected by traditional buyers in Japan, South Korea and Taiwan, upstream oil and gas authority BPMIGAS said on Tuesday.

Buyers in Japan, South Korea and Taiwan have reduced their LNG purchases from Indonesia for this year by 18 cargoes, citing the economic slowdown had reduced demands for energy in those countries.

BPMIGAS' Deputy for Financial Affairs Joko Harsono said GAIL had agreed to purchase one cargo of LNG through French firm Total Oil Trading S.A. at $4.25 per milion British thermal unit (MMBTU).

Besides, two cargoes will be sold to state owned fertilizer firm PT Pupuk Iskandar Muda (PIM) and six other cargoes to be converted into LPG for domestic market.

"The remaining two or three cargoes will be sold on the spot market. There are interested buyers from China and India," Joko said.

Another 6-7 cargoes will be allocated to PIM, he added. (Godang)