Pertamina says U.S. LPG imports rise to 70% as supply shifts

PT Pertamina Patra Niaga said it has started importing additional liquefied petroleum gas (LPG) from the United States since January, with the share of supplies from the country rising to about 70%, as Indonesia shifts sourcing amid geopolitical tensions.

The trading arm of state energy firm Pertamina increased the U.S. share of its LPG imports from around 57% previously, its President Director Mars Ega Legowo Putra said on Wednesday.

“For LPG, transactions with the United States have been in place since January. About 70% of our LPG sourcing now comes from the U.S., and this is not done through direct appointments but follows procurement procedures through tenders,” he told reporters, as quoted by Kontan.

He said the shift was partly aimed at securing supply as tensions involving Iran, Israel and the United States escalate, disrupting global energy markets.

Indonesia has agreed to import about $15 billion worth of energy commodities from the United States under a broader trade arrangement reached before the escalation in tensions.

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Energy and Mineral Resources Minister Bahlil Lahadalia said the deal includes $7 billion of refined fuel, $4.5 billion of crude oil and $3.5 billion of LPG.

“The $15 billion allocated to purchase fuel from the United States does not mean we are increasing import volumes. Rather, we are shifting part of our imports from several regions, including Southeast Asia, the Middle East and some African countries,” Bahlil said on Friday.

Indonesia imports around 7 million tonnes of LPG annually, and volumes sourced from the United States are expected to increase under the arrangement, he added.

Implementation of the deal is expected within 90 days after final directives from President Prabowo Subianto.

Editing by Reiner Simanjuntak