Indonesia purchases LNG cargo from Algeria for Arun's buyer

Indonesia, the world?s biggest exporters of liquefied natural gas (LNG), bought a cargo of LNG from Algeria in order to meet its export commitments after it channeled its gas supplies to domestic users, The Jakarta Post reported in its Friday edition.

The country is resorting to buying LNG from market rivals to supply customers in Japan and South Korea after asking ExxonMobil Corp., which supplies natural gas to PT Arun NGL Co, Indonesia?s oldest LNG refinery in Arun, Aceh, to sell most of its gas to local fertilizer companies.

Even Algeria is also facing problems after a blast at Skikda LNG refinery on Jan. 19 destroyed half of the plant. At least 24 people were killed in the blast.

?We bought the cargo before the fire (blast). It will be used to compensate for Arun,? state-owned oil and gas company PT Pertamina?s director of downstream affairs Harry Purnomo said in Jakarta.

?The price is very expensive,? Harry said.

Indonesia was seeking as many as eight cargoes of LNG from rival producers Nigeria, Oman, Qatar and Malaysia for Arun's customers to allow ExxonMobil to provide enough gas supplies to Aceh's fertilizer firms, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said earlier this month.

The country has earlier bought one cargo from Oman. One cargo of LNG holds about 60,000 metric tons of the fuel.

PT Arun is 55 percent-owned by Pertamina, 30 percent -owned by ExxonMobil and 15 percent-owned by Japan Indonesia LNG Co. (*)