OREANDA-NEWS.  July 10, 2014. PT Pertamina (Persero) and Corpus Christi Liquefaction, LLC, a subsidiary of Cheniere Energy, Inc, signed the second LNG Sales and Purchase Agreement (LNG SPA) for the additional 0.76 million tonnes per annum of LNG for 20 years from Corpus Christi Liquefaction Terminal Train 2, starting in 2019.
 
This agreement is the second deal between Pertamina and Cheniere Energy after two companies signed a sales and purchase agreement (SPA) on December 4, 2013. Under the terms of a prior deal, Cheniere has committed to supply of approximately 0.76 million tonnes per annum of LNG for 20 years.
 
“This additional long term sales agreement demonstrates Pertamina’s strong commitment in pursuing the certainty of LNG supply for its LNG infrastructure projects. This agreement is consistent with Pertamina’s strategy to dominate LNG market and meet the growing gas demand of Indonesia which has been increasing over the years, mainly for electricity and industrial sector,” said Director Gas Pertamina Hari Karyuliarto.
 
Under the SPA, Pertamina will purchase LNG on an FOB basis for a purchase price indexed to the monthly Henry Hub price plus a fixed component. LNG will be loaded onto Pertamina’s own LNG tanker fleet. This additional volume will fulfill the deficit gas of the country starting in 2019.
 
Indonesia gas demand will increase around 4.8% per annum between 2015-2025. The demand growth is influenced by infrastructure readiness mainly transmission and distribution pipeline as well as regasification terminal. Consequently, Pertamina will need to gradually adjust its gas/LNG business orientation to fulfill domestic gas demand while maintaining contracted export volumes.
 
Cheniere Energy, Inc. is a Houston-based energy company primarily engaged in LNG-related businesses,  owns and operates the Sabine Pass LNG terminal and Creole Trail Pipeline in Louisiana. Cheniere has initiated a project to develop liquefaction facilities near Corpus Christi, Texas. The Corpus Christi Liquefaction Project is being designed and permitted for up to three LNG trains, with aggregate design production capacity of up to 13.5 mtpa of LNG, which would include three LNG storage tanks with capacity of 10.1 Bcfe and two LNG carrier docks. Cheniere is also currently constructing four LNG trains adjacent to its Sabine Pass LNG terminal.
 
Pertamina is Indonesia’s state-owned integrated energy company.  We are committed to an ongoing process of transformation and continuous improvement that will lead to our achieving global standards of operational, environmental, and corporate performance. As a national oil company, we are committed to balancing profitable performance with our public service mandate. Pertamina has over 55 years of experience in the challenging geological environment of Indonesia.
 
Our businesses include the exploration and production of oil and gas; the refining, manufacturing and marketing of oil products and petrochemicals; and the development of biofuels, geothermal power and other sustainable alternative energy sources. Pertamina conduct its oil, gas, alternative and renewable energy business in integrated manner based on sound commercial principles.
 
Pertamina has operations and facilities throughout Indonesia. Pertamina’s employees serve the energy needs of over 250 million Indonesians.