Indonesia eyes US's LNG market

BP Migas, the government's agency in charge of oil and gas upstream sector, will soon send a sales team to promote Indonesia's liquefied natural gas (LNG) in the western cost of the United States, Neraca reported on Tuesday.

"This month, BP Migas will visit the United States to find out the market for LNG, particularly in the country's West Coast," Chairman of BP Migas, Rachmat Sudibyo told reporters following a meeting with Minister of Energy and Mineral Resources.

During the visit, BP Migas' officials would hold a series of meetings with executives of the country's major LNG distributors including SEMPRA, Marathon Oil Corporation, Texaco and Shell, Rachmat said.

The LNG market in the U.S.'s West Coast is very promising. SEMPRA alone needs about 6 million tons of LNG a year. Total demands could reach between six million tons and 10 million tons a year, while sales contract could reach about US$1.2 billion a year.

Rachmat said that Indonesian recently signed a memorandum of understanding (MOU) with Marathon on the possible sales of Indonesia's LNG to the United States.

He said that the LNG for the American market would be produced from Bontang, Tangguh and Donggi LNG plants. "If it could be realized, the shipment would be commenced in 2007 for a 20 year contract," he said.

He said that the US would be built its receiving terminal in Mexico due to environmental reason. "We also hope that there would be buyers from Mexico," he added. (*)