SKK Migas seeks overseas buyers for 20 LNG cargoes

Upstream authority SKK Migas will seek for buyers in the Asia Pacific region for 20 LNG cargoes that would not be absorbed by the market in the 2014-2015 period, Bisnis Indonesia daily reported on Wednesday.

The paper quoted Deputy for Commercial Control at SKK Migas, Widhyawan Prawiraatmadja as saying that there are about 20 cargoes from the Badak LNG plant in Bontang that could not be absorbed by the market due to the expiry of a number of export contracts.

?We are currently in talks with PT Pertamina to market the cargoes to existing traditional buyers (in Asia Pacific,? Widhyawan told Bisnis Indonesia, adding that his office would soon make a proposal to the Ministry of Energy and Mineral Resources for approval of the LNG price and allocation.

He acknowledged that there is possibility for the LNG to be diverted to the domestic market as local demand is projected to increase between 2016 and 2018.

State-owned electricity firm PLN has previously said it would require extra LNG supply of 22 cargoes in 2015 as new power plants to come on stream, the paper said. (*)