PGN to start selling uncommitted LNG cargoes next year

Petromindo

IDX-listed gas distribution company PT PGN Tbk plans to start selling uncommitted LNG cargoes from Sanga-Sanga block in the first semester of next year to foreign buyers via tender mechanism, Kontan reported on Saturday.

The paper quoted Adi Munandir, Head of Marketing and Product Development Division at PGN as saying that the company will initially sell two uncommitted LNG cargoes.

?We?re now making further evaluation on the assignment (to sell the) uncommitted LNG cargoes,? he said.

As had been reported earlier this week, the government has appointed state-controlled PGN to sell the government?s portion of gas output from Sanga-Sanga block which will be processed into LNG at the Bontang LNG plant in East Kalimantan Province.

The upstream authority SKK Migas had on December 4 issued decree on the appointment of PGN as the seller of uncommitted LNG cargo from the Bontang plant for the period of 2018 particularly for LNG processed from gas produced at the Sanga-Sanga block. The letter was issued following request made by PGN on October 30.

The Sanga-Sanga block in East Kalimantan is operated by Vico Indonesia, in partnership with Eni and PT Saka Energi Indonesia, an upstream subsidiary of PGN. Vico?s current contract over the block is set to expire later in 2018, and the government has requested Vico and its partners to submit proposal if they are interested for a renewal of the Sanga-Sanga block contract. (*)