Pertamina meets its commitment to export LNG to Japan, Korea

The president of state oil and gas company Pertamina, Baihaki Hakim, has said that Pertamina have been able to meet its commitment to supply liquefied natural gas (LNG) to Japan and South Korea, mostly using its LNG from Bontang LNG plant in East Kalimantan, despite disruption of LNG production from the Arun LNG plant in Aceh, Kompas daily reported Monday.

Baihaki said Saturday that the Bontang LNG plant, however, would be able to supply LNG to both countries only until the end of this month, as the plant needed maintenance operation to keep them in a good shape.

Starting August, Baihaki said, PT Arun NGL Co. must have been able to produce LNG. Otherwise, Indonesia would have to look for new sources of LNG to meet its LNG export commitment to Japan and South Korea.

Nevertheless, Baihaki expressed his optimism that ExxonMobil Oil Indonesia, that had stopped the operation of its gas fields in North Aceh since March 10, this year due to worsening security situation, would be able to supply the needed gas to Arun NGL starting this month.

He noted that preparatory works at Arun's gas fields had reached 70 percent, and therefore, by the end of this month, gas would be flowing to Arun NGL.

If the time table could be met, exactly as it is planned, Baihaki said that Arun NGL would be able to produce LNG in August, and thus, Pertamina would be able to meet its LNG export commitment for August and September using LNG from Arun.

ExxonMobil initially planned to start flowing gas to Arun NGL on July 4, 2001 to coincide with the independence day of the United States, however the deadline was passed following a bomb explosion on June 25, that forced the company to do repair works at the site of explosion.

Meanwhile, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said that he had received reports on the latest development of preparatory works at Arun. Temporary reports said that Arun NGL would be able to produce LNG in the later parts of July. (*)