PT PIM to buy LNG from Qatar

State owned fertilizer company PT Pupuk Iskandar Muda's president director Hidayat Nyakman has expressed optimism that the Aceh-based fertilizer producer would be able to secure gas supply from Qatar.

Speaking to reporters on Sunday, Hidayat said two Qatari liquefied natural gas (LNG) producers Ras Gas and Qatar Gas could provide up to 12 cargoes of LNG to PT PIM in two years.

"We assure that there is a possibility to buy LNG from Qatar. It is now the task of Pertamina and the government to carry out negotiation with the two Qatari LNG producers," he said.

State Minister for State Enterprises Sugiharto has asked Pertamina and BP Migas to soon establish a team to negotiate the LNG purchase with the two Qatari LNG producers to ensure that PT PIM would be able to get gas supply at least until 2007.

ExxonMobil, the only gas producer in Aceh, has agreed to provide gas supply of about 60 million British thermal units per day to PT PIM after the government guaranteed that it would import LNG to meet part PT Arun's LNG export commitment.

ExxonMobil said that government's guarantee is needed because the current production of the ExxonMobil's gas field is only enough to meet the export commitment of the Arun LNG plant. (*)