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SKK Migas to sell 23.5 cargoes of excess LNG from Bontang

Grissik Facilities 2

Gas processing facility at Grissik, South Sumatera oparated by ConocoPhillips (photo OS/rambuenergy.com)

JAKARTA (rambuenergy.com) –  The Indonesian Special Task Force for Upstream Oil and Gas Business (SKK Migas) Head Amien Sunaryadi said that there are currently 23.5 cargoes of excess liquefied natural gas (LNG) from Bontang, East Kalimantan that are being offered to the spot market.

In a hearing with the Commission VII of the House of Representative (DPR), which oversees enegy and mineral sectors, Sunaryadi said his office is yet to get the right price from buyers.

“We want to sell the LNG at US$10 per MMBTU, while the buyer offered to buy at US$8 per MMBTU. We have yet to get the right price,” he was quoted by the State news agency Antara as saying last Thursday.

He said under the current arrangement, PT Pertamina, state owned oil and gas company, was given the mandate to sell LNG on behalf of the government. He said in 2014, a number of major LNG buyers were unable to absorb the LNG, forcing the government to sell the LNG to the spot market.

PT Perusahaan Gas Negara Tbk (PGN) was unable to absorb one cargoe of LNG by its floating storage and regasification unit (FSRU) Lampung, while state electricity company PT PLN was also failed to realize its plan to buy one cargoe of LNG. (*)

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