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Doubts raised over Pertamina’s Mozambique LNG deal

Indonesia national oil company (NOC) Pertamina is reviewing its liquefied natural gas (LNG) purchase contract with the Anadarko Petroleum-led Mozambique LNG development after lawmakers questioned the deal signed in 2019.

Indonesian media has been rife with stories that Pertamina will cancel its LNG purchase contracts, most notably its commitment to buy 1 million tonnes per year (t/y) of LNG from the Mozambique Area 1 project for 20 years due to start by early 2025.

Pertamina signed up for the LNG supply to help fill an expected domestic market gas shortfall as major projects, including Chevron’s Indonesia Deepwater Development (IDD) and Inpex’s Masela scheme, stalled. But gas demand has not expanded as fast as previously predicted and Indonesia has struggled to absorb its own LNG production that was reserved for the domestic markets.

The situation, whereby, Pertamina has committed to buy LNG offtake overseas which is not needed as home, has led to finger pointing in Jakarta. Some lawmakers doubt the validity of data and information used to close the deal with Anadarko, reported Tenggara Backgrounder, a Jakarta-based research service.

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Source: EnergyVoice

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