State energy holding company Pertamina signed on Tuesday a 20-year sales and purchase agreement (SPA) for liquefied natural gas (LNG) with United States-based oil company Anadarko Petroleum Corporation, according to the latter's press statement.
Prior to the announcement, Pertamina corporate marketing director Basuki Trikora Putra said the agreement would only kick off in 2024.
“We need the LNG supply to fulfill our domestic demand, such as for electricity and the Refinery Development Master Plan [RDMP] project,” he told the press in Jakarta on Tuesday.
“We picked [LNG from] Mozambique because of its price competitiveness, [gas] quality and we got better terms.”
The SPA, which Anadarko was represented by Mozambique LNG1 Company, the jointly owned sales entity of the Mozambique Area 1 coventurer, is for 1 million tons per annum.
"Indonesia is expected to be one of the fastest growing natural gas markets in Asia and Pertamina will play a key role in meeting Indonesia's long-term energy needs," said Mitch Ingram, Anadarko executive vice president in the press statement. (bbn)