Mexican firms to buy LNG, coal from Indonesia

Indonesia has secured commitment from three Mexican energy companies to purchasing LNG and coal, Antara news agency reported

The agreements were reached during a series of meeting between President Susilo Bambang Yudhoyono and CEO of Sempra Energy, TAMSSA-Axtellarat Energy and Group Transportes Maritimos Mexicanos SA (TMM) in Mexico City on Sunday (Monday Jakarta time).

The agreements will be realized next year.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro, Trade Minister Marie Pangestu, Minister of State Secretary Hatta Radjasa and Foreign Minister Hassan Wirajuda accompanied the president during the meetings.

Purnomo said under one of the agreements, Sempra would buy 3.7 tons of LNG per year from the Tangguh LNG plant in West Papua. Sempra operates three terminals in Baha, California. ?The gas will be supplied by Tangguh starting from the second semester of 2009. The Sempra terminal is ready and they had visited Tangguh terminal,? Purnomo said.

TAMSSA-Axtellarat Energy, meanwhile, is considering constructing two gas terminals in Gresik, East Java and Banten respectively in cooperation with state gas company PT Perusahaan Gas Negara (PGN) and state electricity company PT Perusahaan Listrik Negara (PLN). It remains unclear when the firms will realize the plan.

The third Mexican company, TMM, would buy 6 million tons of coal per year from Indonesia to fire power plants in Mexico, he added.

Purnomo said, however Mexico had yet to complete the contruction of a coal port to receive the coal supplies but in the one-on-one meeting with President Yudhoyono, the TMM chief said he was ready to speed up the port building project to facilitate the purchase of coal from Indonesia. (*)