Pertamina Inks Indonesia's First LNG Import Deal

State owned Pertamina and Cheniere Energy signed a sale and purchase agreement on Wednesday for the supply of approximately 0.8 million tonnes of LNG per year for 20 years. 

The supply will start in 2018 of the LNG plant being developed near Corpus Christi, Texas, USA, Pertamina said in a statement. 

This is the first LNG purchase commitments from international suppliers to meet the growing energy needs in Indonesia, the company added. 

The fuel will be supplied to Arun LNG storage and Central Java FSRU.

“Domestic gas demand is expected to increase by about 3.9%, reaching 7.2 bcfd in 2025, mainly driven by the need for gas-fired power plants and industrial sector in Java and Sumatra. To that end, Pertamina should gradually adjust the orientation of the gas business / its LNG to meet domestic gas demand while maintaining export volume contract,” the company said.

The Corpus Christi Liquefaction Project is being designed to have three LNG trains, with a production capacity of up to 13.5 mtpa of LNG, which will include three LNG storage tanks with a capacity of 10 , 1 BCFD and two LNG shipping dock. Cheniere is also building four LNG terminal adjacent to the Sabine Pass LNG terminal.

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