Bloomberg News

Pertamina May Drop Plan to Import LNG as Prices Increase

December 09, 2011

(Adds Pertamina comments in second paragraph.)

Dec. 9 (Bloomberg) -- PT Pertamina will probably drop plans to import liquefied natural gas because the price is too high, a company official said.

Pertamina, the Indonesian state-owned oil and gas company, may not go ahead with plans to import LNG because the price has soared to a range of $16.50 to $22 Mmbtu, Mochamad Harun, a company spokesman, said today in Jakarta.

The company needs 10 million metric tons of LNG annually by 2013 to supply 12 projects, including a floating storage re- gasification unit in West Java and an LNG receiving terminal in Central Java, according to data from Pertamina. It has so far secured 1.5 million tons of LNG supply, Harun said.

“The chance for importing LNG is slim at current high price,” said Harun. “We hope the government will ask LNG producers to sell more to the domestic market.”

PT Pertamina Gas, a unit of Pertamina, was in talks with Qatar Gas Transport Co., Petroliam Nasional Bhd. and Royal Dutch Shell to import LNG for the Central Java terminal, Gusti Azis, Pertamina Gas’s director of operation said on June 30.

--Editor: Mike Anderson.

To contact the reporter on this story: Fitri Wulandari in Jakarta at fwulandari@bloomberg.net

To contact the editor responsible for this story: Berni Moestafa at bmoestafa@bloomberg.net


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