SKK Migas sees low price of imported LNG

By Godang Sitompul

SKK Migas, the upstream oil and gas authority, anticipates the price of imported LNG in Asia to be lower in the next few years due to expected surge in supply.

?In the next few years, the price of imported LNG will be low,? said SKK Migas Chairman Rudi Rubiandini to Petromindo.com Wednesday.

He said that the expected lower LNG price has prompted countries in Asia to develop new LNG floating storage facilities (FSRU) even without assurance of supply from domestic sources. Examples include the 14 MTPA LNG facility being built by Singapore, 20 MTPA by Thailand, and 22 MTPA by India.

Therefore, with the expected flooding of imported LNG in the near future in Asia, the operators of floating storage and regasification units (FSRUs) in Indonesian can also source their LNG requirement through import. ?In terms of gas supply, not necessary to get from domestic (source), in the next few years, the price of imported LNG will be low,? Rudi said.

Editing by Reiner Simanjuntak