Indonesia to seek 9 overseas LNG cargoes in 2009

Upstream oil, gas authority Chairman R. Priyono said Indonesia will seek to buy 9 cargoes of overseas LNG in 2009 to enable and Arun LNG plants to set aside gas supply for Aceh fertilizer plant PT.Pupuk Iskandar Muda (PIM).

Under the swap scheme, ExxonMobil Oil Indonesia, which operates gas fields in Aceh, will cut supply to Arun equal to 9 cargoes in 2009. Government will then buy 9 cargoes of LNG in international market and deliver them to Arun?s customers.

Priyono said PIM needed gas equivalent to 12 LNG cargoes annually to operate normally. PIM has signed long-term gas supply deal with Medco Energi Internasional Tbk, which operates Block A gas field. Gas from the block will start flowing at the rate of 110MMCFD to PIM.

Meanwhile, Priyono also said that in 2010, BP-operated Tangguh LNG plant may be able to allocate 3 cargoes of LNG to PIM in 2010.

1 cargo of LNG equals to 125,000 metric tonnes. (godang)