LNG allocated for domestic market can be exported: Official

LNG allocated for domestic market which could not be absorbed by local consumers due to limited gas infrastructure facilities can be exported, but only on short-term contracts, Bisnis Indonesia reported on Wednesday.

About 60 percent of the country?s LNG output has been dedicated for export market, while the remaining 40 percent for domestic market.

?The 40 percent allocated for domestic market if not absorbed can be exported but not on long-term contracts,? said Director General of Oil and Gas IGN Wiratmaja Puja as quoted by the paper.

He said that the government must ensure LNG supply at home as over the next several years, new gas infrastructure facilities such as gas storage, floating storage and regasification units, and pipelines will have been developed.

He added that LNG production dedicated for the export can be exported under long term contracts of up to 15 years.

Wiratmaja told Petromindo.com recently that at present, Indonesia is experiencing a surplus of LNG. Of the total 267.5 std cargoes of LNG to be produced this year from the Bontang and Tangguh LNG plants, as many as 10.4 std cargoes have yet to find buyers. (*)