Mitsubishi mulls buying LNG from RI for U.S. terminal
Friday, February 6 2004 - 03:02 AM WIB
Long Beach’s LNG terminal has an annual capacity of five million tons.
Mitsubishi’s project manager for LNG procurement and shipping global gas unit Kunihiko Sakaki said the company is building an LNG terminal at Long Beach, where there was an energy crisis in 2001.
Federal Reserve Bank chief Alan Green once said the U.S. will not have any natural gas and it must import gas through pipeline and LNG from foreign countries.
“In this matter, Mitsubishi Corporation is considering Indonesia as one of the candidates for supplying LNG to Long Beach,” said Sakaki in a statement, which was received by the Bisnis on Thursday.
Indonesia exports LNG from Bontang in Kalimantan, Arun in Aceh and Tangguh in Papua, Matindok in Sulawesi to various countries, he said.
Sakaki said the fixing of spot market for LNG in the U.S. is unique because it is not subject to the global crude market price. However, LNG price for Japan is fixed on the basis of global crude prices.
That’s why, Indonesia can overcome price risk if it exports to various countries, he added. Long Beach terminal will send a delegation to Indonesia very soon.
Mitsubishi is not only a buyer of LNG from Indonesia but also the operator of LNG Tangguh project. (*)