Pertamina fails to buy LNG from Qatar

Tuesday, April 12 2005 - 04:51 AM WIB

State oil and gas company Pertamina is now approaching liquefied natural gas (LGN) producers in Africa, after its first attempt to buy a cargo of LNG from Qatar has fallen through.

Pertamina?s director of marketing and trade Ari Sumarno said on Tuesday that the firm had ordered a cargo of LNG from an LNG producer in Qatar, but the Qatar producer said ?their gas fields have been fully committed?.

While the state firm was still looking for a chance to buy LNG from ?another gas field? in Qatar, it was also now seeking the possibility of buying the commodity from producers in Africa.

?The LNG market now is quite tight,? Ari said.

Pertamina needs to import a cargo of LNG to meet its export commitment to its buyers. The shortage of the LNG supply occurs because PT ExxonMobil Oil Indonesia, the main supplier of the Arun LNG plant in Aceh, has been asked by the government to allocate part of its gas to fertilizer producers. As a result, the plant has suffered a shortage of gas supply to meet its export commitment. The plant needs at least a cargo of LNG to meet its export commitment for April. (Godang)

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