India seeking short and long term LNG supply
Thursday, October 27 2011 - 05:37 AM WIB
?I told (India) that short-term supply is possible. However if India wants a long-term supply contracts, India must invest in upstream (gas sector) as well,? Rudi Rubiandini, BPMIGAS deputy chairman for operation told Petromindo.com.
He said India is seeking significant amount of LNG from Indonesia. At present, India has LNG receiving facilities with capacity of 10 million tons per annum (MTPA) and in the process of expanding these facilities capacity to 22 MTPA.
?India is ready to invest in upstream sector in Indonesia,? Rudi Rubiandini said.
Director General for Oil and Gas, Evita H. Legowo said last week that India is enthusiastic to invest in Indonesia upstream and downstream oil and gas sectors. This includes investing in building refineries, infrastructures and pipelines.
?They (India) need a lot of gas. They are willing to invest in upstream to downstream sector. However I told them that Indonesia put national interest as first priority,? said Evita, who visited India recently for an energy discussion forum.
Evita said Indian companies that interested to invest in Indonesia are including Petronet LNG Limited, which engages in developing floating LNG terminal as well as Oil and Natural Gas Corporation Limited (ONGC), which engages in oil and gas exploration and production.
Petronet LNG was quoted in Indian media recently that it is exploring opportunities to pick up stakes in Indonesian gas blocks and import LNG from the country. It was also looking to import LNG from the Tangguh project.
India?s LNG imports could rise to 20 MTPA by 2017 from 9.3 MTPA in 2010-11.
India has a long-term contract to import 7.5 MTPA from Qatar. It will begin importing 1.5 MTPA from Australia under another contract from 2014, and is banking on more supplies from both countries. India is seeking to diversify its sources.
India energy ministry said earlier that it is looking to import up to 5 MTPA of LNG from Indonesia.(bernard/roffie)