Pertamina to buy tankers from China to win LNG supply

The state-owned oil and gas company plans to purchase oil tankers from China in the hope it could win China?s LNG (liquefied natural gas) supply contract.

Pertamina president Baihaki Hakim was quoted by the Koran Tempo daily as saying that a support from the government to approach China would give edge to Pertamina to win the LNG market.

Baihaki said that Pertamina would need around 20 oil tankers over the next five years. He added that quality of China-made tankers was good and that the price was expected to be 25 percent lower that offered by other countries.

Baihaki had repeatedly said that the government support was crucial to help Pertamina win the China LNG market amid strong competition from Australia, Malaysia, and Qatar.

China?s Guang Dong province needs around 3 million tons of LNG per year. Pertamina will rely on the Tangguh LNG project in Papua province for the LNG supply. The Tangguh field is currently operated by energy giant BP.(*)