Indonesia reaches deal with American firm to import LNG

The Indonesian oil-and-gas state firm PT Pertamina has signed a second agreement to purchase liquefied natural gas (LNG) from U.S.- based Cheniere Energy Inc., a move aiming at meeting gap in domestic gas demand, the Pertamina said in a statement on Wednesday.
Under the agreement, the importation would be done in 20 years with 760,000 tons of super-cooled gas shipped to Indonesia annually. "This agreement is consistent with the strategy of Pertamina to dominate LNG (domestic) market and catch the growth of LNG demand in Indonesia, which has been persistently rising since the last several years, particularly in industry and electricity," Director of Gas of PT Pertamina Hari Karyuliarto said in the statement.
Indonesia LNG production has dwindled, but the demand in domestic markets keeps growing by an average of 10 percent per year.