Pertamina to discuss LNG contracts with overseas buyers

Pertamina's marketing director Ari Soemarno said on Monday that he and other senior executives of the company would visit Japan next week to discuss the state oil and gas firm's liquefied natural gas (LNG) export contracts with Japanese buyers.

He refused to unveil the details of the talks to be made, but said that the main purpose of the visit was to discuss the extension the existing LNG export contracts with the Japanese buyers.

Pertamina said recently that the company was seeking to reschedule LNG exports to some of its foreign buyers due to the decline in gas reserves in the country's main gas fields such as the Arun gas field in Aceh.

The decline in the gas production in the Arun gas field has resulted in the shortage of gas supply to state owned fertilizer producer PT Pupuk Iskandar Muda, because the existing gas production is only enough to meet the export commitment of the Arun LNG plant.

The government decided in July to get part of the gas supply from the Arun gas field in order to save the operation of the fertilizer producer. As the consequence, it should buy LNG from overseas buyer to meet the export commitment. The government, however, has faced difficulties to find the LNG due to the lack of LNG stocks in the international spot market. (godang)