Pertamina assures LNG supply to Japan and South Korea for June

State oil and gas company Pertamina assured on Thursday that there would be enough liquefied natural gas (LNG) supplies to Japanese firms Tepco and Tohoku and South Korean company Korea Gas Corp. (Kogas) for June.

The three companies normally receive LNG supplies from Pertamina's LNG unit in Aceh, PT Arun NGL Co., but Arun is thus far still unable to produce LNG following disruptions in gas supplies from the gas fields owned by ExxonMobil Oil Indonesia Inc, a subsidiary of American energy giant ExxonMobil Corp.

ExxonMobil suspended its gas operation on security problems caused by the conflict between the government's military and police and the province's separatist group.

Pertamina's president Baihaki said for June, Pertamina would supply a total of 10 cargoes to Tepco, Tohoku and Kogas. Six cargoes would be shipped from its subsidiary PT Badak NGL Co in Bontang, East Kalimantan and the remaining four cargoes would be taken from the LNG plant owned by Malaysian oil and gas company Petronas.

Baihaki said the three companies' needs for LNG in June was still small but their demand would increase in winter.

Badak will also have an excess capacity in the month but the company will not be able to cover the shortfall from Arun in winter as it will be operate at full capacity to meet its own customers' LNG needs.

"Thus, there will be a supply problem in winter," Baihaki warned. (Alex/Godang)