Jakarta (Platts)--26Feb2013/525 am EST/1025 GMT
The Indonesian units of ExxonMobil and BP have reached a deal to deliver LNG from Tangguh to South Korea's Kogas, instead of natural gas that it was supposed to get from Arun LNG, a senior official from upstream regulator SKK Migas said Tuesday. In turn, Arun LNG will deliver natural gas via pipeline to local fertilizer company Pupuk Iskandar Muda, he added. The swap deal was necessitated by the fact that PIM has no LNG receiving terminal. "Under the swap mechanism, Arun LNG plant will deliver natural gas that was allocated to Kogas, to PIM through a pipeline. This is required as PIM does not have an LNG receiving terminal. Therefore, Tangguh will ship LNG to Kogas," Widhyawan Prawiraatmadja, the commercial deputy chief at SKK Migas, said. "Six cargoes will be swapped between Arun and Tangguh this year," he said, adding that "we have to assure that PIM will secure its gas supply." Article continues below...Sign up to LNG Daily today. LNG Daily is essential reading as LNG supply dynamics continue to change in big markets like Japan, China, India and the U.S. This premier independent news publication for the global LNG industry gives readers information on every aspect of the global market from new LNG supply projects to gas quality issues.
The Indonesian units of ExxonMobil and BP have reached a deal to deliver LNG from Tangguh to South Korea's Kogas, instead of natural gas that it was supposed to get from Arun LNG, a senior official from upstream regulator SKK Migas said Tuesday. In turn, Arun LNG will deliver natural gas via pipeline to local fertilizer company Pupuk Iskandar Muda, he added. The swap deal was necessitated by the fact that PIM has no LNG receiving terminal. "Under the swap mechanism, Arun LNG plant will deliver natural gas that was allocated to Kogas, to PIM through a pipeline. This is required as PIM does not have an LNG receiving terminal. Therefore, Tangguh will ship LNG to Kogas," Widhyawan Prawiraatmadja, the commercial deputy chief at SKK Migas, said. "Six cargoes will be swapped between Arun and Tangguh this year," he said, adding that "we have to assure that PIM will secure its gas supply."
Article continues below...
LNG Daily is essential reading as LNG supply dynamics continue to change in big markets like Japan, China, India and the U.S. This premier independent news publication for the global LNG industry gives readers information on every aspect of the global market from new LNG supply projects to gas quality issues.
Arun NGL is the operator of the Arun LNG plant, which is 55% owned by state oil and gas firm Pertamina, 30% by ExxonMobil Indonesia and the remaining 15% by Japan-Indonesia LNG Co. Tangguh will supply LNG to Kogas using the diverted cargoes from what was allocated to US trader Sempra. Under the original contract with Sempra, Indonesia can divert up to half of the 3.7 million mt/year of LNG to boost its revenue. The Tangguh project in Bintuni Bay has two liquefaction trains that can produce 7.6 million mt/year of LNG. BP is the operator of the project with a 37.16% interest. The other partners are CNOOC (13.9%), MI Berau BV (16.3%), Nippon Oil Exploration (12.23%), KG Companies (10%), LNG Japan (7.35%) and Talisman (3.06%).--Anita Nugraha, newsdesk@platts.com--Edited by E Shailaja Nair, shailaja_nair@platts.com
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