Pertamina seeks one LNG cargo for April

State oil and gas company PT.Pertamina is negotiating to buy one overseas LNG cargo for April delivery to make up for production cut from Arun NGL in Aceh, a Pertamina official was quoted by Kompas as saying on Monday.

Pertamina director Ari Soemarno did not say whom Pertamina are negotiating. Neither did he reveal where the cargo would be shipped.

Ari said Pertamina is forced to seek spot cargo after Korean and Japan buyers had declined to meet Pertamina?s request to delay shipments of 9 LNG cargoes from Aceh. Those cargoes are designated to Aceh?s fertilizer firm PT. PIM I.

The buyers? decision to reject Indonesia?s request would mean Pertamina would have to seek overseas 9 LNG cargoes to meet its obligation or to cancel gas supply to PIM, wither of which, would be a tough decision to make.

Indonesia?s credibility as reliable LNG supplier had been eroding in the past years after due to dwindling reserves problem and obligation to supply gas that are designated for LNG production in Aceh and technical problems that are cutting gas supply production in Bontang, East Kalimantan. (*)

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