Six cargoes from Bontang sold to traders
Thursday, March 10 2016 - 12:47 PM WIB
Six cargoes of LNG from the Bontang LNG plant in East Kalimantan will be sold to traders rather than end buyers through spot market as efforts to sell them to end buyers have apparently failed.
Director General of Oil and Gas IGN Wiratmaja said the Ministry of Energy and Mineral Resources has approved plans of upstream authority SKK Migas to sell the six cargoes.
?All the cargoes will be released in the second quarter of 2016,? Wiratmaja told Petromndo.com.
SKK Migas? LNG Marketing Section Head Rayendra confirmed that six cargoes from Bontang will be sold to traders, better known in the industry as ?portfolio players?, rather than end-buyers.
?We have received approval from the ministry to sell the cargoes on the spot market in the second quarter to portfolio players or traders,? Rayendra said.
The government has assigned state owned oil and gas firm PT Pertamina (Persero) to sell Indonesian LNG for which the firm is entitled to some marketing fee. Pertamina is normally able to sell the LNG to end-buyers. This is probably the first time the firm has failed to sell the LNG to end-buyers.
Pertamina has yet to comment on the issue.
Editing by Johannes Simbolon