Tangguh signs LNG supply deal for PIM

Upstream authority SKK Migas said that gas supply for fertilizer firm PT Pupuk Iskandar Muda (PIM) in Aceh for this year has been finally secured following the signing on Tuesday of an agreement to supply a total of five cargoes of liquefied natural gas (LNG) from Tangguh LNG facility in Papua.

SKK Migas Deputy for Commercial Control Widhyawan Prawiraatmadja said on Wednesday that the signing of the LNG supply was made by Pertamina, ExxonMobil Indonesia, PIM and BP Berau Ltd.

Earlier in February, an agreement was made for the delivery of one cargo, thus making the total supply commitment from Tangguh for PIM to six cargoes. .

The agreement was part of an LNG swap mechanism, under which Arun LNG facility in Aceh will allocate LNG already committed to South Korean buyer, Kogas, to PIM, but in return Tangguh LNG will supply Kogas the same volume of LNG. The swap deal was made because PIM does not have LNG receiving terminal to facilitate the LNG delivery from Tangguh. Arun will deliver the gas for PIM via pipeline.

Editing by Reiner Simanjuntak