Iran to grab Indonesia gas contract

State electricity company PT Perusahaan Listik Negara (PLN) is considering buying 4M tonnes of LNG a year from Iran. A shipping source close to PLN said the move was prompted by the Qatar’s decision to cut production so it could force a higher global price. PLN, it is believed, is only prepared to buy LNG at $5mmbtu, said the official. The company is negotiating with other Middle Eastern countries as well as Iran. PLN desperately needs LNG for its many power plants. It is building an LNG terminal in Bojonegara in Banten, which is reported to have a capacity of 400M cubic feet, but in the interim it will continue to rely on foreign imports. Another option is for PLN to seek imports from Australia, which because of its proximity translates into possible cheaper transport costs.