SKK Migas to finalize LNG HoA with S. Korea, Japan

By Godang Sitompul

Upstream authority SKK Migas, is seeking to finalize the heads of agreement (HoA) for the supply of liquefied natural gas (LNG) from the Tangguh plant train #3 facility in Papua to buyers in South Korea and Japan.

SKK Migas Commercial Deputy, Widiyawan Prawiraatmadja, said that he is hoping the HoA could be signed in the middle of this year.

?For the train#3 facility, about 40 percent (of output) will be dedicated for the domestic market, and the remainder for export,? he told Petromindo.com Wednesday.

He added that the current security tense in Korea is yet to be considered as obstacle for LNG export to South Korea. ?The war threat has yet to become an obstacle until the South Korean buyers say so,? he said.

Separately, Popi Ahmad Nafis, Head of the LNG Commercial Division at SKK Migas, said that the 40 percent LNG output allocation for the domestic market has already taken into account the supply for the planned fertilizer firm in Papua.

Editing by Reiner Simanjuntak