Pertamina to Import LNG from Mozambique

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  • Kilang gas PT Arun LNG di Lhokseumawe, Aceh. TEMPO/Marifka Wahyu Hidayat

    Kilang gas PT Arun LNG di Lhokseumawe, Aceh. TEMPO/Marifka Wahyu Hidayat

    TEMPO.CO, JakartaState-owned oil and gas company PT Pertamina said it will import liquefied natural gas (LNG) from Mozambique, as reported by Antara News.

    Senior Vice President for Engineering and Operation of Pertamina Salis Aprilian said the imports would cover shortage in domestic supply after 2020.

    Indonesia is one of the world's largest producers of LNG but its most of its production is for export under long term contracts.

    "Imports are needed to meet fast growing domestic requirement," Salis said on Tuesday.

    He said domestic requirement grows 5 percent per year while production is almost stagnant, even declines.

    He said he could not give figure for import from Mozambique but including imports from its neighboring country, total imports from Africa would reach 1.5 million tons a year.

    "With the addition of 1.5 million tons we will have additional supply of 3 million tons a year after 2020," he said.

    Earlier, Pertamina already signed two 20-year contracts to import a total of 1.52 million tons of LNG annually starting 2018-2019 from Cheniere Energy Inc, United States.

    The first contract was signed on December 4, 2013 and the second on July 1, 2014 each for 0.76 million tons per year.

    The LNG would be shipped with Pertaminas tankers to feed 5 units of Pertamins LNG terminals.

    The five terminals include three floating storage and regasification units (FSRU) off Jakarta, Cilamaya, and Cilacap; and two onshore terminals -- Arun in Aceh and Bojanegara in Banten.

    Based on data from Pertamina, in 2014, domestic gas consumption is estimated at 3,000 million cubic feet per day (MMSCFD) to increase to 8,000 MMSCFD in the next 10 years.

    Indonesia has major LNG production center in Bontang of East Kalimantan, in Tangguh of Papua, and Donggi Senoro of Sulawesi. A big plant is under construction off Marcella , southern Maluku.

    The countrys first LNG plant in Arun has been almost out of business as gas reserve in the Arun field is almost depleted.

    Masela block is operated by Japan's Inpex Corporation. The Masela gas block has one of the country's largest gas reserve. The project will include construction of a floating LNG plant with a production capacity of 2.5 million tons a year.

    Earlier Inpex said in a report, it has signed an agreement with with the subsidiary of Royal Dutch Shell plc, to sell part of its share in Masela.

    It already sold a 10 percent stake to PT EMP Energi Indonesia of the Bakrie Group.

    The new agreement with Shell plc, reduced Inpex control of Masela to 60 percent.