Pick of the crop: for Indonesia's domestic gas consuming industries
US pair sign Indonesia gas deals
US supermajors Exxonmobil and Chevron have signed a series of multi-billion dollar deals to supply gas to domestic industries in Indonesia, according to reports.
ExxonMobil signed two deals worth $1.4 billion and $1.7 billion respectively to supply gas to fertiliser maker Petrokimia Gresik and state electricity company PLN from the Cepu offshore block, while Chevron will supply gas worth $1.6 billion from its production sharing contracts in East Kalimantan to local fertiliser group Pupuk Kaltim, the Jakarta Post reported.
The agreements were signed on the sidelines of an international gas conference in Jakarta.
However, the paper said it was not clear how much gas would be delivered under the deal.
The deals come a day after Indonesian Finance Minister Sri Mulyani Indrawati said the government would prioritise gas production for undersupplied domestic markets rather than export in coming year.
She said the country had no option but to supply burgeoning local needs, despite strong foreign demand for its gas production, the newspaper said.