REPUBLIKA.CO.ID, JAKARTA - State oil and gas company PT Pertamina will import 0.8 million tons of liquefied natural gas (LNG) per annum starting 2018 after it signed a 20-year contract with US-based Cheniere Energy Inc.
"We have signed a SPA (sales purchase agreement) with Cheniere on Dec. 4 for the supply of about 0.8 million tons of LNG per annum for 20 years starting 2018," Pertamina Gas Director Hari Karyuliarto stated in a press statement released recently.
The LNG supplies would be sourced from Chenieres refinery near Corpus Christi in Texas, United States, he said. The Corpus Christi Liquefaction project is designed to have three LNG trains, with an annual production capacity of 13.5 million tons.
The deal marks the first time Pertamina and Indonesia are importing LNG from Cheniere. Hari pointed out that the LNG imports would meet domestic gas demand, projected to touch 7.2 billion cubic feet per day by 2025. Currently, Indonesia's gas consumption stands at 3.6 billion cubic feet per day.
"Gas demand from power plants and industries, particularly in Java and Sumatra continues to increase," Hari said.
The LNG imports would enable Pertamina to continue meeting domestic needs and maintain the export volume of its contract, he said.
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