PIM may get Sempra LNG diversion
Tuesday, August 4 2009 - 07:56 AM WIB
Aceh fertilizer producer PT Pupuk Iskandar Muda (PIM) on Tuesday signed an MoU with upstream oil, gas authority BPMIGAS to study the possibility to divert LNG intended to be shipped to Sempra Energy from BP-operated Tangguh LNG to PIM.
According to a release by BPMIGAS, Sempra LNG diversion will be supplied to PIM in 2010.
The release did not give further detail.
Tangguh LNG has 3.7 MTPA long-term supply contract to Sempra with shipment expected to start this year. Tangguh, however, could divert half of the LNG intended to be shipped to Sempra to other buyers by paying $1 per MMBTU premium to Sempra.
PIM is searching for gas supply in order to be able to operate its fertilizer plant as supply contract with ExxonMobil has expired and gas supply from Medco-operated Block A would not start until 2011. (alex)