Pertamina seeks to delay LNG shipment to South Korea and Japan

State oil and gas company Pertamina is seeking to delay the shipment of eight cargoes of liquefied natural gas (LNG) to South Korea and Japan.

Pertamina, as the operator of the Arun LNG plant in Aceh, has been forced to buy LNG cargoes from foreign producers to make up for production cuts in Arun plant.

The firm has told buyers in both countries that the plant would not be able to ship nine cargoes of LNG this year given the decline in gas supplies to the LNG plant. The plant gets gas supplies from the Arun field owned by ExxonMobil Oil Indonesia (EMOI), but the American firm has shifted some gas supplies to local fertilizer companies on the government?s order.

Buyers in South Korean and Japan however declined to meet Pertamina?s request to delay the shipment of the 9 LNG cargoes, insisting Pertamina meet its obligations.

Earlier, Pertamina said it would buy one LNG cargo from foreign spot market to meet the buyers? demand for April delivery.

?Pertamina will negotiate with the buyers for the delay in the shipment of the remaining eight LNG cargoes There is a possibility that they would accept the proposal given the that LNG demand in both countries normally declines in March and beyond ,? Joko Harsono, head of marketing division at upstream authority BP Migas, said on Tuesday. (Alex).

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