Pertamina seeks partner for LNG plant in Kalimantan

Indonesia's state oil firm Pertamina said on Friday it needed to find a partner soon to build another liquefied natural gas (LNG) plant in East Kalimantan or it would risk losing market share.

"We have to start building a new plant this year to fill market (requirements) in 2005. Therefore, we are seeking a partner," Pertamina downstream director Muchsin Bahar told reporters.

"We need around $600 million to build one LNG plant. If we do not build now we will lose market (share) in 2005," he added.

Pertamina announced its plan for the new plant last September, saying its capacity would be around 3 million tonnes.

Pertamina has eight LNG plants in the East Kalimantan city of Bontang and four in Arun in northwestern Aceh province with a combined total annual capacity of around 26 million tonnes.

Indonesia, Asia's only OPEC member, is the biggest LNG exporter in the world with more than 22 million tonnes going to Japan, Taiwan and South Korea each year.

Bahar said Pertamina was in talks with state-run Korea Gas Corp (KOGAS) over the possibility of supplying more LNG to South Korea.

"South Korea has asked for more supply from Pertamina but we have no spare capacity at the moment," he said.

"Our LNG plants have the capacity to produce more but we need more natural gas."

He said it was possible for natural gas producers including TotalFinaElf and Unocal to increase their output.(*)