Update-PIM eyeing gas supply from Tangguh, Eni and Petronas

(adds deal with Petronas)

Aceh fertilizer maker PT.Pupuk Iskandar Muda (PIM) said on Monday it had asked 300,000 tonnes of LNG supply from BP-operated Tangguh LNG project for 2009-2010 delivery to meet its gas requirement.

CEO Mashudianto told reporters that it had expressed its interest to buy gas from Tangguh to upstream oil, gas authority BPMIGAS.

He did not give detail about the price.

Under the swap mechanism, US oil, gas firm Exxon Mobil Corp., which supplies gas to Arun LNG plant in Aceh, could supply gas to PIM and reduces supply to Arun. Arun could then get the LNG cargoes from Tangguh and sell them to its customers in East Asia.

7.6MTPA Tangguh LNG plant will start production in 2009 and has been fully contracted. However, under the deal to its North American customer Sempra Energy, Tangguh could divert half of the 3.7MTPA supply to other buyers which are willing to pay better price.

Mashudianto said PIM is also eyeing gas supply from Eni SpA-operated Krueng Mane gas fields starting 2015. He said PIM is looking for long-term supply of 60MMCFD from Krueng Mane, but could offtake more if the gas field has more reserves.

Krueng Mane exploration block, which was signed in September 1999, is located approximately 50 km north of the Arun LNG plant. The block has proven undeveloped reserves of 183 billion cubic feet and exploration potential of at least 4.5 trillion cubic feet reserves.

Separately, Lili Djadjuli, Technical and Development Director said PIM is also in talks with Malaysian firm Petronas to get gas supply from its LNG plant in Egypt.

Under the scheme with Petronas, PIM would receive gas supply from Exxon Mobil which originally should have been sent to Arun. Petronas, would then sent several cargoes of LNG to Arun customer Korean firm Kogas. Petronas would then be given right to sell some of PIM?s fertilizer production.

Djadjuli said that Petronas will have excess capacity from its Egypt LNG plant for next year. He did not give specific volume.(godang/Bernard)