Indonesia to buy Oman LNG cargo for Japan June delivery

Friday, May 20 2005 - 04:11 AM WIB

State oil and gas company PT Pertamina had agreed to buy one cargo of LNG from Omanto meet its contractual demand after a customer in Japan refused to accept delays in shipment, Bloomberg reported Friday.

"The LNG cargo will be delivered in late May or June," Kardaya Warnika, chairman of Indonesia's oil regulatory body BPMIGAS said .

"The buyer has rejected the rescheduling," Kardaya said, without naming the company. "The price is $6 to $7 per million British thermal unit."

Pertamina is buying LNG to meet deliveries after a drop in production. Pertamina operates Indonesia's LNG plants, including the world's biggest on East Kalimantan and has been asking buyers in Northeast Asia to accept delays to shipments.

In Aceh province, output from the nation's second-biggest LNG plant is falling because the government ordered that some natural gas is diverted to fertilizer makers.

In April, Pertamina said it failed to buy a LNG cargo from Qatar to meet sales commitments to customers in Northeast Asia because the Indonesian government failed to finance the purchase.(*)

Share this story

Tags:

Related News & Products