State-owned oil and gas company Pertamina will be ready to buy 1.6 million tons of liquefied natural gas (LNG) from Tangguh if China's Fujian Province decides to cut its imports, according to a China Broadcast reports.
Fujian signed a long term contract with the Indonesian government in 2002 to import 2.6 million tons of LNG from Tangguh where an LNG plant
is being built to be operational in 2008.
Pertamina will be able to supply the LNG to Java for which it plans to build a gasification unit in East Java, according to the report. Pertamina will set aside $50 million to finance the construction of the gasification unit from which the gas will be distributed to industries in East Java and Central Java.
East Java has been reported to be facing a shortage in gas supply.
Source: China Broadcast