Indonesia Seeks Buyers for LNG Cargoes
According to a report in Reuters, Indonesia is seeking buyers for "three to four" uncommitted liquefied natural gas (LNG) cargoes from its Bontang refinery operated by state energy company Pertamina in 2016.
"If there's a domestic buyer that wants them we'll prioritise them for domestic use," SKKMigas vice president of gas commercialisation Sampe L. Purba told reporters, noting that these were the country's only uncommitted cargoes for 2016.
Indonesia is expected to consume 60 LNG cargoes in 2016, Purba said, 80 percent of which will be used to generate electricity.
Meanwhile, Indonesia’s LNG exports face a tough challenge from new projects in Australia and Papua New Guinea, an analyst at Indonesian oil and gas regulator SKKMigas said.
Muhammad Pradipta warned delegates that, with long-term contracts at the Bontang plant coming to an end and demand falling among traditional East Asian buyers, Indonesia will be forced to look for new customers or to sell into the increasingly competitive spot market.
