Pertamina Seeks 3 Million Tons of LNG

Published Mar 19, 2014 5:58 AM by The Maritime Executive

Antara News reports that Indonesia’s state-owned oil and gas company Pertamina will seek at least three million tons of LNG per annum to meet the LNG requirements of four terminals in 2016.

Pertamina’s director for gas affairs Hari Karyuliarto said the company wanted the LNG supplies to come from domestic sources.

"We will give priority to domestic sources, although we will also keep open the option to import," he said. LNG could be imported if its price is lower than domestic prices. An estimated two million tons of LNG, out of the three million tons, is needed per annum.

Currently, Pertamina is looking exploring options in the US and Africa. In December, Pertamina signed a sales purchase agreement with Cheniere Energy in the US to import 0.8 million tons of LNG per annum beginning in 2018 for 20 years.

According to Karyuliarto, three of the four FSRUs located in the Jakarta, Semarang, Cilacap and Aceh about to be operational.

In 2014, Indonesian gas consumption reached 3,000 billion cubic feet per day (MMSCFD) and will increase to 8,000 MMSCFD in the next 10 years.