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Markets & Forecasts

Pertamina struggles to absorb LNG cargoes

The Indonesian NOC may send its surplus cargoes into neighbouring markets as a result of weaker-than-expected domestic gas demand The Indonesian NOC may send its surplus cargoes into neighbouring markets as a result of weaker-than-expected domestic gas demand.
By Damon Evans 6 August 2019 Asia Pacific / LNG 0 34463
An FSRU docked in Indonesia. (Hoegh LNG)

Indonesia is struggling to absorb domestic LNG cargoes reserved for the local market. As a result, the surplus is expected to spill into regional markets – particularly Bangladesh – as Pertamina looks to optimise its LNG portfolio and manage its various purchase commitments in the short term.

The NOC has a 25-year deal with Australian LNG producer Woodside Petroleum due to start this year and a contract to take LNG from United States-based Cheniere Energy that started last year.

When the import deals were signed, Pertamina and...