Pertamina secures more Aceh LNG sales contract

State oil and gas company Pertamina said Friday it had secured a deal with Japan?s Tepco to lift one cargo of liquefied natural gas (LNG) from Aceh to Japan in September, according to Pertamina official.

Earlier, Pertamina said it had also secured a contract to sell two cargoes of LNG to Tohoku Electric also for September lifting.

Pertamina expects to produce four cargoes of LNG from Arun Natural Gas Liquefaction (NGL) plant in September.

?We are still in negotiation with Korea?s Kogas to sell one cargo in September,? said Muchsin Bahar, Pertamina?s downstream director.

Arun re-started its LNG production in August after months of stoppage following the suspension by American oil and gas firm ExxonMobil Corp. of its gas operation in Aceh on security concerns.

Pertamina has to persuade Arun's customers to buy again from the LNG plant, because most of them had signed contracts with other LNG producers to cover shortfalls from Arun.

Muchsin added that for October, contractual obligation requires Pertamina to supply 9 to 10 cargoes of LNG.

?If we want to keep our reputation as LNG producer, we will have to meet our obligation to buyers since at that time, when winter is approaching, it would be hard for our buyers to find LNG from other sources,? said Muchsin.

Therefore, said Muchsin, ExxonMobil?s gas fields must be operated at full capacity by October.

ExxonMobil?s, whose gas feeds Arun NGL, currently operates only half of normal capacity as two gas clusters are still being shut down.

Earlier, Effendi Situmorang, Pertamina?s director of production sharing management said ExxonMobil expected to resume full gas operation in September. (alex/godang)