INPEX CORPORATION announced today that INPEX and its partner Total E&P Indonesie, operator of the Mahakam PSC, signed a Heads of Agreement with PT Nusantara Regas pertaining to the supply of 11.75 million tons of Bontang LNG over the period of 2012-2022 to the West Java LNG terminal, the first LNG receiving terminal to be built in Indonesia (Floating Storage Regasification Unit).
PT Nusantara Regas is a joint venture between PT. Pertamina (Persero) and PT. PGN (Persero) Tbk. This Heads of Agreement will be followed by an LNG Sale and Purchase Agreement to be executed in 2011 prior to the start-up of deliveries.
This is an important milestone as it is the first commitment for gas producers in Indonesia to supply domestic LNG to meet the growing energy needs of the country. It will also contribute largely to the Indonesian Government objective of an increased switch from fuel oil to gas fired power generation.
INPEX has been expanding its exploration and development activities in Indonesia as one of its international core business areas. INPEX is conducting production activity in the Offshore Mahakam Block which has the largest gas production in Indonesia.
INPEX is also in the process of developing the large scale Abadi LNG project in the Masela Block, the Arafura Sea, for which INPEX as the Operator is now preparing for the Front End Engineering and Design (FEED).
INPEX will futher endeavour to expand upstream exploration and production in Indonesia.
Source: Inpex Corporation, October 13, 2010;