Indonesia's Nusantara Regas may import as much as 2 million mt/year of LNG from the US to supply its 3 million mt/year floating storage and regasification facility in Jakarta Bay, West Java.
The company, a joint venture between state-owned oil and gas company Pertamina and state-owned gas transmission and distribution company Perusahaan Gas Negara, is in talks with a US LNG supplier, a senior official said Friday.
"We will cooperate with Pertamina to import LNG, as imports from the US currently are feasible. The price is really competitive compared [with LNG] from Bontang [in Indonesia], as US LNG is oversupplied currently," Nusantara Regas President Director Hendra Jaya told Platts. He declined to identify the US supplier.
Nusantara Regas expects to start importing LNG from the US by the first quarter of 2017, he said.
Pertamina holds 60% of Nusantara Regas and PGN owns 40%.
The Jakarta Bay facility will have the capacity to process of 3 million mt/year of LNG or 400,000 Mcf/d of gas.
Nusantara Regas has already secured an 11-year deal to take 1.5 million mt/year of LNG or 200,000 Mcf/d of gas from Indonesia's Mahakam in east Kalimantan. Mahakam, held 50% each by France's Total and Japan's Inpex, is scheduled to be on stream by April 2012.
Pertamina is also eyeing 1.5 million mt/year of LNG from the Tangguh project in eastern Papua.
Nusantara Regas signed a heads of agreement with state-owned power utility Perusahaan Listrik Negara in 2010 under which PLN would buy gas from the floating terminal at $10/MMBtu.
