PGN, PIM cut down LNG purchase from Tangguh

IDX-listed gas distribution firm PGN and state-owned fertilizer firm PT Pupuk Iskandar Muda (PIM) have decided to cut down their LNG purchase plans this year from the Tangguh plant in West Papua, Kontan reported on Friday.

PGN spokesman Irwan Atmanto said that said the company would only realize three of the five LNG cargoes initially planned to be purchased from Tangguh this year.

He said that the company must adjust the purchase volume of the LNG, to be supplied for its floating storage and regasification unit (FSRU) in Lampung, because so far only state-owned electricity firm PLN has committed to buy gas from the facility. He said that the LNG purchase will be adjusted upward in line with increasing number of the FSRU?s customers.

Upstream oil and gas authority SKK Migas Secretary Gde Pradnyana said that there will be no sanction for the cancellation, but he was clearly disappointed saying that the LNP purchase plan should had been calculated properly.

He said that SKK Migas will now have to find buyers for the unabsorbed LNG from the Tangguh plant, estimated to be at least four cargoes including two from PGN and two from PIM.

He declined to disclose the price of the Tangguh LNG contracted to PGN and PIM. (*)