LNG Ltd. to sell C. Sulawesi LNG to traditional buyers

Australian firm LNG Limited said on Thursday that the entire LNG production from its proposed 1.7MTPA Padang LNG plant project in Central Sulawesi would be sold to one or more Indonesia?s existing LNG customers. It did not give further detail.

Indonesia, the world?s top LNG exporter is currently facing LNG supply shortage due to problems in East Kalimantan gas producers, from which Bontang LNG plant takes its gas requirements. Indonesia currently sells its LNG production to Japan, South Korea and Taiwan.

The company said in its quarterly report that gas supply deal with operator of Senoro-Toili PSC had been deferred pending finalization of the scope of the project, which included gas delivery rate, and gas suppliers? proposed level of investment in Padang LNG project. The company expected all the outstanding matter could be resolved by June quarter.

The company is targeting LNG production from the project to commence 2008

Senoro-Toili block, which will supply gas for Padang LNG is jointly operated by Medco Energi and Pertamina. (alex)