Pertamina seeks alternative buyers for Sulawesi LNG project

State oil and gas company PT Pertamina said on Monday it was looking for other potential buyers its Donggi Senoro LNG project in Central Sulawesi should the deal with two Japanese offtakers fail.

?We are looking for new buyers,? Pertamina CEO Karen Agustiawan told reporters. She did not give further explanation.

Pertamina and its partner IDX-listed firm PT Medco Energi Internasional have earlier agreed to sell 1 million tonnes per annum of LNG to Chubu Electric Power and another 1MTPA to Kansai Electric.

The government, however, thus far, has yet approved the deal, saying that the price formula was not favorable and that some of the gas produced from the project must be sold to meet domestic demand.

She said the agreement with Chubu and Kansai would expire at the end of this month.

Another Pertamina official, who declined to be quoted by name, was quoted by Reuters as saying that Chubu and Kansai would seek LNG from other sources if there was uncertainty on the purchase deal.

The plant, with capacity of 2 MTPA is originally planned to come onstream in 2013. (godang)