23 December 2008

Indonesia To Buy 5 LNG Cargoes In Spot Market Next Year -Official

By Deden Sudrajat contributing to Dow Jones Newswires, publihsed by MorningStar,12-22-08 9:50 PM EST

JAKARTA -(Dow Jones)- Indonesia will buy five liquefied natural gas cargoes in the spot market next year, which it will ship to South Korean buyers, a government official said Tuesday.

Raden Priyono, the chairman of the upstream oil and gas regulator BP Migas, said that Indonesia will divert the gas it had previously earmarked for the South Korean buyers to a state-owned fertilizer company, PT Pupuk Iskandar Muda.

One cargo comprises 125 tons of LNG.

Indonesia has been struggling to meet its commitment to deliver LNG to offshore buyers as it's boosting domestic consumption of the fuel in order to reduce reliance on crude oil. However, natural gas production has been also dwindling due to a lack of major investments.

© Copyright 2008 Morningstar, Inc. All rights reserved

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