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Indonesia to sell LNG export cargoes to domestic industry

Indonesia to sell LNG export cargoes to domestic industry

Indonesia plans to supply eight liquefied natural gas cargoes originally bound for Japan, South Korea and Taiwan this year to a local fertilizer plant in Aceh province to meet domestic demand, an official said.
PT Pertamina, the state oil company, and PT Pupuk Iskandar Muda may sign an agreement next week for supplies of the cargoes from the Arun LNG plant, Mashudianto, Pupuk's president director, said in an interview yesterday. The Aceh-based fertilizer plant paid US$5.8 per million British thermal units for a cargo of equivalent gas from Arun last month, he said.
"We need another eight cargoes of LNG to operate our plant," said Mashudianto. "We are ready to pay the market price."
Indonesia, the world's third-biggest LNG producer, may have to divert 12 cargoes of LNG bound for Japan, South Korea and Taiwan this year, Energy Minister Purnomo Yusgiantoro said on Wednesday. The three buyers may cancel the LNG shipments because of the global recession.