Shell signs LNG contract with Pertamina

By Febry Silaban

Shell Eastern Trading (Pte) Ltd, a Singapore-based subsidiary of Royal Dutch Shell, has signed a sales and purchase agreement with state owned oil and gas firm PT Pertamina (Persero) to supply the latter up to 1 million ton of LNG per annum under a 20-year supply contract starting in 2019.

?Pertamina has clinched a deal with Shell to purchase 1 mtpa of LNG at a competitive price," an industry source told Petromindo.com.

The LNG price is slightly cheaper than the price of Jangkrik LNG which is owned by Italian firm Eni SpA. The LNG price is about US$13.5per mmbtu, CIF Jakarta, according to the source.

Editing by Johannes Simbolon