Indonesia seeks to buy 18 LNG cargoes per year until 2008/9

Indonesia needs to buy some 18 overseas LNG cargoes to be shipped to its East Asian per year at least until 2008/2009 if it wants to keep Aceh fertilizer firm alive, Upstream oil and gas authority BPMIGAS said on Thursday.

BPMIGAS gas marketing division head Djoko Harsono said the volume was necessary in order for ExxonMobil Oil Indonesia to divert some of its gas production to fertilizer firms PT.Pupuk Iskandar Muda (PIM) and reduce supply to Arun NGL.

A team led by Minister of State Enterprises Sugiharto is scheduled to leave for Qatar and Oman to seek term LNG contracts to secure the cargoes.

The government has decided to keep gas strapped PIM to continue operations despite falling gas supply.

PIM?s gas shortage is expected to be fulfilled when Block A is being developed. Block A gas block. ConocoPhillips is finalizing plan of development for the block with the aim of supplying gas to PIM by 2009. But reports said Conoco and ExxonMobil, which has`50 percent interest each in the block, wanted to sell the block due to security reasons. (godang)