Indonesia hopes to close Mexico LNG deal Sept. this year

State oil and gas company Pertamina is expected to be able to close deal to supply liquefied natural gas (LNG) to Baja, Mexico when Mexico?s president visits Indonesia in September this year, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said Tuesday.

?Talks between Pertamina and Marathon Oil are progressing substantially. But the realization of the deal will depend on several factors such as LNG pricing and how fast Marathon could secure regulatory clearance and permit from Mexican governments on its integrated energy complex,? said Purnomo, who, along with Pertamina president Baihaki Hakim visited Japan and Mexico last week in LNG marketing campaign.

Marathon is a U.S.-based energy trading company. The company is planning to operate Baja California Regional Energy Complex in western Mexico. The complex is expected to have a capacity to regasify as much as 750 million cubic feet per day of LNG to meet local needs and for export to southern California. Marathon expected to complete the construction of the LNG complex in 2006.

Marathon and Pertamina had signed an MoU in which Pertamina will supply up to 6 million tons of LNG per year to Baja California.(godang)