Marathon indicates to buy 6 MTPA of LNG: Pertamina

US energy giant Marathon Oil had indicated interest to buy around 6 million tons per annum (MTPA) of liquefied natural gas (LNG) from state oil and gas company Pertamina to cater for West Coast America market, a Pertamina official said Tuesday.

?The source of LNG is not yet firm, but it could be either from Bontang in East Kalimantan, Tangguh LNG center in Papua province or from Pertamina?s Donggi gas fields in Central Sulawesi, or the combination of the three,? said Baihaki Hakim in a parliamentary hearing in Jakarta Tuesday.

Pertamina and Marathon had earlier signed agreement in which Pertamina will become key supplier for Marathon?s a major liquefied natural gas (LNG) re-gasification and power generation complex near Tijuana in the Mexican State of Baja California. With a potential start-up in 2005, the complex would have the capacity to re-gasify up to 750 million cubic feet per day (MMCFD) of LNG for local use as well as export to Southern California.

Earlier, a director of Exspan Nusantara, Pertamina?s partner in Central Sulawesi exploration venture said it would likely sign in January 2003 a Head Agreement Marathon Oil LNG from Central Sulawesi the West Coast. Pertamina and Exspan are still searching for market and partner to develop Donggi gas field.

Baihaki also said EPC of Tangguh LNG project would commence early next year, making the LNG center operable by the end of 2005. (godang)