In a deal that will see Indonesia import LNG from the international market for the first time, Allens and Widyawan & Partners have advised State-owned oil and gas company PT Pertamina (Persero) (Pertamina) on an LNG Sale and Purchase Agreement with Corpus Christi Liquefaction, LLC.
Corpus Christi Liquefaction is a subsidiary of US-based energy company Cheniere Energy Inc.
Under the deal, which was signed in December 2013, Pertamina agreed to buy 0.8 million tonnes of LNG per year for 20 years from Cheniere's Corpus Christi Liquefaction Project in Texas.
The Corpus Christi Liquefaction Project is under development and is being designed and permitted for up to three trains, with an aggregate design production capacity of 13.5 million mt/year. LNG deliveries are expected to commence in 2018.
Pertamina, which has historically been an LNG exporter, is the foundation customer for the Project.
This matter is a milestone for the company, as it is Indonesia's first LNG import deal with international suppliers to meet its growing energy needs.
Pertamina is now in the process of converting one of its export terminals, the Arun LNG terminal, into an LNG receiving terminal. It intends to distribute the LNG from this supply to the Arun LNG regasification and storage terminal and its Central Java floating storage and regasification unit, which comes online in 2016.
According to lead Partner Tracey Greenaway, who worked with Widyawan & Partners lawyer Brooke Van Gils on the matter, Indonesia's first LNG import deal is reflective of the recent trend among Asian LNG buyers to diversify their supply sources, and to seek access to LNG from the US and Canadian market.
'We were pleased to have the opportunity to work with Pertamina on this significant import agreement,' Ms Greenaway said.
|Legal team||Tracey Greenaway (Partner – Perth), Brooke Van Gils (Foreign Legal Adviser – Jakarta)|
Notes for editors.
Allens is a commercial law firm working throughout Australia and Asia. Through its integrated alliance with Linklaters it provides clients access to 40 offices in 28 countries around the world.