RI mulls cutting LNG price for Japan<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The government is mulling whether to lower the price of
\nliquefied natural gas (LNG) for Japanese buyers, so as to better
\ncompete with other LNG producers.<\/p>\n
"The price that we will offer will not be as high as in
\nprevious years," Minister of Energy and Mineral Resources Purnomo
\nYusgiantoro was quoted as saying on Thursday by Tempo online. He
\ndid not provide any information on the new price.<\/p>\n
The price of LNG is currently set at between US$2.20 and $2.40
\nper million British thermal unit (MMBTU).<\/p>\n
The minister's remark signals that the government is taking
\nJapanese buyers' call for a more competitive pricing scheme for
\nLNG sold to the country into serious consideration.<\/p>\n
Japan is one of Indonesia's traditional LNG buyers, as are
\nSouth Korea and Taiwan.<\/p>\n
The government is making concerted efforts to retain Japanese
\nbuyers' loyalty in purchasing LNG from Indonesia, as some of
\ntheir LNG sales contracts are due in 2010.<\/p>\n
Indonesia's competitors, including Australia, Qatar and
\nRussia, have been pursuing Japan aggressively by offering more
\ncompetitive contractual terms.<\/p>\n
Indonesia will lose billions of dollars in potential revenue
\nif the Japanese firms do not renew their contracts.<\/p>\n
Purnomo said the two countries would discuss the matter
\nfurther on the sidelines of the October ASEAN Summit in Bali.<\/p>\n
Currently, Indonesia has two LNG plants, one located in
\nBontang, East Kalimantan, and the other in Arun, Aceh, with a
\ncombined production capacity of 31.6 million tons.<\/p>\n
A third LNG plant, Tangguh, is under development by a
\nconsortium led by Anglo-American energy group BP Plc. in Bird's
\nHead, Papua.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-mulls-cutting-lng-price-for-japan-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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