Pertamina may seek 14 overseas LNG cargoes this year

State oil and Gas Company Pertamina said Indonesia might have to look for overseas LNG cargoes this year to fulfill commitment its East Asian buyers as supply from Bontang LNG plant is expected to fall short of annual delivery program (ADP).

Pertamina director Ari Soemarno said that buyers, especially from Japan had indicated unwillingness to further defer or cancel the cargoes. Ari said that the Japanese buyers demanded that Indonesia substitute the cargoes, which means Indonesia must seek to buy overseas LNG to meet its commitment.

Ari said from Bontang alone, Pertamina predicted 14 LNG cargoes shortage, out of the 322 cargoes agreed in 2006 ADP.

Ari said Pertamina might turn to Oman and Qatar for help.

Japanese buyers had repeatedly expressed disappointment over Indonesia?s inability to meet supply commitment.

Bontang, currently the world?s largest LNG plant in operation is unable to meet supply commitment due to gas supply decrease from two major East Kalimantan gas suppliers; Vico Indonesia and Chevron. (godang)