RI faces difficulties in finding LNG in spot market

Indonesia will face more difficulties in getting liquefied natural gas (LNG) in the spot international market and this situation would affect gas supply to fertilizers companies, Bisnis Indonesia and Harian Ekonomi Neraca newspapers reported in their Friday editions.

?The fire accident at a LNG plant in Algeria would lead to rise in LNG prices in the spot market and it would be difficult for Indonesia to get LNG to supply to several fertilizer companies,? Minister of Energy and Mineral Resources Purnomo Yusgiantoro said in Jakarta on Wednesday.

Purnomo was referring to the fire accident at a LNG plant in Skikda, Algeria on Tuesday. The 335,000-barrel-per day LNG refinery plant was closed indefinitely due to a blast in which 23 people were killed.

However, the minister said, government will continue its efforts to fulfill its commitment to supply additional LNG for three fertilizer factories in Aceh.

Purnomo added that government is optimistic about getting LNG.

?We will try to get additional five to eight LNG cargoes. We are still trying for them, but in case if we don?t get them, then, we will stick to the Cabinet meeting?s decision regarding allocation of 75 million cubic feet per day to Pupuk Iskandar Muda II plant,? he said.

Purnomo also told reporters that the LNG output from Arun and Bontang refineries is meant for export so that the Indonesia?s obligation with the buyers would be fulfilled.

?If we fail to supply as per the contract with buyers, Indonesia will be considered as defaulter and as a result the contract will not be extended,? Purnomo said. (*)