Japanese firms extend Indonesian LNG contract<\/p>\n
TOKYO (Dow Jones): Tokyo Electric Power Co. and Tohoku
\nElectric Power Co. said Tuesday they have agreed with Indonesia's
\nstate-owned Pertamina to extend their existing term liquefied
\nnatural gas contract for five years through the end of 2009.<\/p>\n
However, the volume of LNG the two Japanese power utilities
\nwill buy following the extension will be less than one-third of
\nthat in the current 21-year contract, which will run until
\nDecember 2004.<\/p>\n
Under the new contract signed Monday, the two companies will
\nbuy a total of 960,000 metric tons a year of LNG on a free on
\nboard basis from Indonesia's Arun II terminal between January
\n2005 and December 2009.<\/p>\n
The northern Japan-based Tohoku Electric will buy about
\n830,000 tons per year, while Tokyo Electric, or Tepco, will
\npurchase about 130,000 tons annually.<\/p>\n
At present, Tohoku Electric buys 3 million tons a year of LNG
\nand Tepco buys 510,000 tons a year from the Arun II project.<\/p>\n
\"We are aiming for diversifying supply sources for LNG, to
\nsecure economical feasibility and stability of the supply,\" a
\nspokesman for Tohoku Electric said.<\/p>\n
Tohoku, which bought a total 3.7 million tons of LNG from
\nIndonesia, Malaysia and Qatar in the year ended March 2000, is in
\nnegotiations to start buying LNG from Australia's North West
\nShelf project although nothing concrete has been decided.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/japanese-firms-extend-indonesian-lng-contract-1447893297",
"image": ""
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"sponsor_url": "https:\/\/okusiassociates.com"
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