JAKARTA - The Indonesian state own energy company PT Pertamina and Woodside Energy Trading Singapore Pte Ltd have signed a preliminary agreement for the supply of approximately 0.5 to 1.0 million tons of LNG per annum for a period of 15 to 20 years with deliveries commencing in 2019.
This agreement remains conditional upon the negotiation and execution of a fully termed LNG sales and purchase agreement and obtaining all necessary approvals, including the relevant Woodside and Pertamina board approvals, Woodside said in a statement.
Indonesia’s demand for gas has been increasing in recent years amid declining domestic output. The projected decline in domestic output has compelled Pertamina to ink various LNG deals in recent months. In March, the Indonesian state owned firm signed a long term 15 year deal with France’s Total E&P Indonesie. (*)