Indonesia on aggressive mode to market LNG to N. America

Indonesia is embarking on aggressive marketing mode in a bid to win a portion of lucrative US liquefied natural gas (LNG) market, officials said.

?Within the next few years, North America will likely consume a large portion of world?s LNG production. Indonesia, as world?s top LNG producer Indonesia will want to have a portion of the market. Therefore, Indonesian government, together with LNG producers, is embarking on aggressive marketing mode by actively approaching future North America LNG importers,? said Kardaya Warnika, vice-chairman of Indonesian upstream oil and gas authority BP Migas, which is in charge of Indonesian LNG marketing.

Separately, head of LNG marketing division of BP Migas Djoko Harsono also said that the body had held talks with at least six companies, which sought to supply LNG to North America. ?BP Migas had signed memorandum of understanding (MoU) with Marathon Oil recently, and we are hoping to be able to sign MoU with Sempra Energy within a month. BP Migas had also held talks with Chevron Texaco, Shell, Japan?s Mitsubishi Corp., and Belgium energy firm Tractabel SA,? he said.

Djoko said that Indonesia is hoping to be able to secure a purchase contract of around 4 million tons of LNG per year from the North America market in the next few years.

Scores of international energy firms are eyeing to build LNG receiving terminals, either in Baja?s Mexico or west coast of the USA. Financial Times in its Friday edition reported that there are plans to build or reopen 20 LNG terminals around the US, after the region suffer acute natural gas shortage.

The US Department of Energy says that the US natural gas demand will grow by 50 percent in 2005. The US is predicted to consume 20 percent of world?s LNG production in 2020.

An LNG observer told Petromindo.Com recently that North American market offers balance for the over supplied Asia Pacific LNG markets. ?As Asia Pacific LNG markets tend to be in buyers? market, North America market will somewhat balance the equation,? he said.

Indonesia is s top LNG producer, supplying around 23 million tons of LNG per annum to Japan, South Korea and Taiwan from its Bontang and Arun LNG plants. The third LNG plant-BP-operated Tangguh- will come onstream in 2007 with initial capacity of 7 million tons per annum. (alex)