Nusantara Regas in LNG supply talks with Chubu Electric

PT Nusantara Regas (NR), a JV between state gas distribution firm PT PGN (Persero) and PT Pertamina (Persero) that will operate an LNG floating receiving terminal in Jakarta, is in talks with Japan?s Chubu electric over the possibility of the latter to supply spot LNG cargoes to NR.

Technical and Operation Director Ari Adji said on Thursday that NR will buy Chubu?s cargoes on spot basis. He said that Chubu will have excess cargoes during spring time in Japan, when fuel consumption is expected to decrease due to warm weather.

He said if the deal is struck, Chubu would likely divert cargoes from Bontang to NR.

Ari did not give detail about the volume and time schedule.

Ari also said that NR is in talks with 6 traders including from Singapore and Japan for more LNG supply for the receiving terminal. ?We have signed confidentiality agreement, but detail on volume and price has yet to be agreed,? he said.

NR is scrambling to get additional supply for the Jakarta receiving terminal, which has capacity to process 3 MTPA of LNG but thus far only secured 1.5 MTPA from Total E&P Indonesie?s Mahakam block through Bontang LNG.

Gas from Total, which is equivalent to 200 MMCFD will be entirely supplied to PLN?s power plant in Muara Karang.

The Jakarta LNG receiving terminal is slated to commence operations in 2012.(giok)