Official: Indonesia's Pertamina Seeks US LNG Supply, Shale Equity

"By 2018, we will need to import gas. Even now, the new administration won't allow new exports," Didik said. He added that existing supply contracts will be extended by no more than one year at a time, depending on the pace of growth in domestic demand.

Pertamina is also in talks to buy a stake in a U.S. shale gas producer operating in the Eagle Ford basin, Didik said, but declined to provide details due to the confidentiality of the negotiations. Eventually, the company will look at buying into LNG export terminals in the United States.

"The first step is to secure the LNG supply," Didik said. "Then we need to mitigate the price risk by going upstream. And then, to connect the whole value chain, we need to go into liquefaction."

The company also plans to set up an LNG trading desk in Singapore next year that will trade physical cargoes and later move into financial hedging, Didik said.

Pertamina will hire two LNG traders who will work alongside an in-house strategist at the Singapore trading desk, Didik said.

(Editing by Biju Dwarakanath)


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