Indonesia to supply LNG to Japan's Tohoku-Pertamina

Reuters, Tue Dec 1, 2009 11:16pm EST

JAKARTA, Dec 2 (Reuters) - Indonesia's state oil firm PT Pertamina has signed a 15-year agreement to supply 125,000 tonnes of liquefied natural gas (LNG) per year to Tohoku Electric Power Co (9506.T), a Pertamina spokesman said on Wednesday.

The gas would be supplied from the BP-led (BP.L) Tangguh project in Papua, Pertamina spokesman Basuki Trikora Putra said.

Tangguh shipped two LNG cargoes to South Korea and China in July, a cargo to Mexico in August, a cargo to South Korea in September and a cargo to China in October.

Oil and gas watchdog BPMIGAS said Tangguh planned to export 50 cargoes in 2010. [ID:nSP504530]

The Tangguh LNG plant has a capacity to produce 7.6 million tonnes per year via two trains.

Indonesia, the world's third-biggest LNG exporter, has been counting on Tangguh to help make up for declining production at other projects.

There has also been political pressure to supply more gas to the domestic market in Southeast Asia's biggest economy to avoid costly oil imports as its own oil reserves dwindle.

(Reporting by Muklis Ali; Writing by Dicky Kristanto; Editing by Ed Davies) ((ga.arka@thomsonreuters.com; Reuters Messaging: ga.arka.reuters.com@reuters.net; +62 21 384 6364 ext 911)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com))