Kuntoro calls on gas industry to be more competitive<\/p>\n
JAKARTA (JP): Minister of Mines and Energy Kuntoro
\nMangkusubroto said on Friday the country's natural gas industry
\nneeded to review its marketing strategy to address growing
\ncompetition in the regional market.<\/p>\n
"The regional natural gas market has changed from a sellers
\nmarket to buyers market. We have to adjust ourselves to the new
\nsituation," Kuntoro said in the weekly media conference.<\/p>\n
He said the country enjoyed an edge over several other gas
\nproducing countries, especially Middle Eastern states, due to its
\nclose location to buyers.<\/p>\n
But, he said, the country's natural gas industry should not
\nrely on its location advantage but instead had to intermittently
\nimprove on its performance and quality controls to produce a
\nbetter price formula than its competitors.<\/p>\n
As part of the quality control improvement effort, Kuntoro
\nsaid he had instructed state oil and gas company Pertamina, which
\nmonopolizes gas exploration in the country, to review
\ntransportation costs charged by shipping companies for the
\nshipment of liquefied natural gas (LNG) to export markets.<\/p>\n
Several companies ship LNG to foreign markets, including PT
\nHumpuss Intermoda Transportasi and PT Samudra Petrindo, which are
\nrespectively controlled by two of former president Soeharto's
\nsons, Hutomo Mandala Putra and Bambang Trihatmodjo.<\/p>\n
Several analysts believe these companies charge transportation
\nfees higher than the market rates.<\/p>\n
Indonesia's traditional importers of natural gas in the region
\nare South Korea, Japan and Taiwan.<\/p>\n
Other countries, like China and India, have also lately turned
\ntheir attention to gas use as a source of energy.<\/p>\n
Indonesia exported between 24 million tons and 26.5 million
\ntons of LNG to South Korea, Japan and Taiwan over each of the
\npast five fiscal years and plans to export 28 million tons this
\nfiscal year.<\/p>\n
LNG is produced at two giant plants located in Arun, Aceh and
\nBontang, East Kalimantan.<\/p>\n
Another LNG plant is planned for construction in Tangguh,
\nIrian Jaya.<\/p>\n
Indonesia has maintained its position as the world's largest
\nLNG producer for years but several countries, including Qatar,
\nOman, Malaysia, Australia and Brunei, have begun to look for a
\nlarger share of the market.<\/p>\n
India's decision to buy LNG from the Middle East instead of
\nfrom Pertamina, its longtime supplier, has shown that Indonesia
\nis facing fiercer competition.<\/p>\n
South Korean state gas company Korean Gas (Kogas) has
\nreportedly planned to reduce its importation of LNG from
\nIndonesia as part of a retrenchment program to deal with the
\ncountry's economic crisis.<\/p>\n
Kuntoro, who had made a week-long visit to South Korea last
\nweek, denied speculation that Seoul was considering buying LNG
\nfrom other countries.<\/p>\n
He said the monetary crisis had forced the country to reduce
\nthe volume of LNG purchased from Indonesia.<\/p>\n
South Korea offered to countertrade its commodities --
\nincluding medical equipment, medicines, petrochemical products,
\nagricultural tools, shoe leather -- for Indonesian crude oil, LNG
\nand mineral products, he said.<\/p>\n
"South Korea strongly requested a boost in its trade
\nrelationship with Indonesia through countertrade measures,"
\nKuntoro said, adding that he had passed the request to Minister
\nof Industry and Trade Rahardi Ramelan. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/kuntoro-calls-on-gas-industry-to-be-more-competitive-1447893297",
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