Bloomberg News

Pertamina to Get U.S. Gas in Indonesia’s First LNG Import Deal

December 04, 2013

PT Pertamina, Indonesia’s state-owned oil and gas producer, signed its first agreement to import liquefied natural gas in a deal to take supplies from Cheniere Energy Inc. (LNG:US)’s project in Corpus Christi, Texas.

Pertamina will buy 800,000 metric tons a year of gas starting 2018 for Indonesia’s domestic market, the company said in an e-mailed statement. The LNG will be delivered to Pertamina’s receiving terminals in Arun and Central Java.

“This agreement confirms Pertamina’s commitment in ensuring LNG supplies that are crucial for continuity of the company’s gas and LNG infrastructure projects,” said Hari Karyuliarto, the company’s gas director.

Indonesia’s gas consumption is estimated to grow 3.9 percent to 7.2 billion cubic feet a day by 2025, mainly due to demand from power generation and industrial users in Java and Sumatra, according to Pertamina.

Cheniere expects the U.S. Federal Energy Regulatory Commission to approve construction of its Corpus Christi project by mid-2014, Nicolas Zanen, the company’s vice president for trading, said in September. The U.S. company will make a decision whether to build the facility next year, according to Zanen.

To contact the reporter on this story: Chou Hui Hong in Singapore at chong43@bloomberg.net

To contact the editor responsible for this story: Pratish Narayanan at pnarayanan9@bloomberg.net


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Companies Mentioned

  • LNG
    (Cheniere Energy Inc)
    • $68.4 USD
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