Pertamina to import LNG from Mozambique

State owned oil and gas company PT Pertamina said it will import liquefied natural gas (LNG) from Mozambique.

Senior Vice President for Engineering and Operation of Pertamina Salis Aprilian said LNG imports would help meet growing demand, particularly after 2020 when domestic supply is projected to be in shortage.

"Imports are needed to meet fast growing domestic demand," Salis told the media on Tuesday, pointing out that while domestic consumption has been growing at 5 percent per year, production is nearly stagnant, or declining.

He did not provide further details about the planned LNG import from Mozambique, but said that total imports from Africa is projected to reach 1.5 million tons per year.

"With the addition of 1.5 million tons we will have additional supply of 3 million tons a year after 2020," Salis said.

Indonesia is one of the largest LNG producers in the world, but output has been allocated for export under long-term contracts.

Pertamina has previously signed two 20-year contracts to import a total of 1.52 million tons of LNG annually starting 2018-2019 from Cheniere Energy Inc, United States.

According to Pertamina data, domestic gas consumption for this year is estimated at 3 mmscfd, but is projected to jump to 8,000 mmscfd within the next ten years. (*)