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Pertamina Looks to Buy Tangguh LNG
Ririn Radiawati Kusuma | January 10, 2012

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Indonesian state-controlled oil and gas firm Pertamina says it wrote to the government last year to request permission to buy gas from the Tangguh plant in Papua to supply a planned liquefied natural gas terminal in Arun, Aceh.

Currently, the Tangguh gas block in Papua’s Bintuni Bay area, which is one-third owned by plant operator BP Indonesia, moves 115 shipments of cargo each year to Sempra Energy’s port in the US and Fujian, China. One shipment is equivalent to 145,000-160,000 cubic meters of LNG.

Because the US buyer has reduced purchases due to lower domestic prices, gas buyers in Indonesia, including state-controlled distributor Perusahaan Gas Negara, are competing to buy the sought-after gas from the Tangguh plant.

“We sent the letter of request to the minister of energy last year. That letter was a follow up to our intention to buy LNG domestically from Tangguh,” said Pertamina spokesman Mochammad Harun on Monday. “We expect a positive response from the government so that our project can materialize.”

Harun was referring to Pertamina’s plan to convert its Arun LNG plant into an LNG receiving terminal and regasification unit, via a $378 million investment.

At present, the Arun plant produces 6.5 million metric tons of LNG each year.