Japan to renew deal of RI LNG

Japan to renew deal of RI LNG

JAKARTA (JP): Japanese buyers will soon renew their long-term
contract for the purchase of Indonesia's liquefied natural gas
(LNG) for another 20 years.

Gothari Anwar, a representative of the state-owned Pertamina,
told Antara in Tokyo yesterday that the renewal of the contract
would be signed on Aug. 3.

The new LNG contract will allow the Japanese buyers to buy
another 8.4 tons of LNG per year from Indonesia for another 20
years.

Gothari said that the current contract was signed in 1973 but
the LNG delivery to the Japanese buyers started in 1977.

The new contract will be signed by the same buyers, comprising
of Osaka Gas, Toho Gas, Kansai Electric Power Company, Chubu EPC,
Kyushu EPC and Nippon Steel.

Gothari said that Kansai, under the planned contract, would
import 2.64 million tons of LNG per annum, Chubu EPC 2.2 million
tons, Kyushu 1.6 million tons, Osaka 1.34 million tons, Nippon
Steel 0.56 million tons and Toho another 0.06 million tons.

Gothari said that the renewal of the LNG contract reflects the
confidence of the Japanese buyers in Indonesia, which is now
facing stronger competition from other countries in the world LNG
market.

Besides Indonesia, the LNG suppliers to the Japanese market
also include Malaysia, Qatar, Brunei, Australia, Yemen and Oman.

Gothari said Indonesia exports an average of 18.8 million tons
to Japan per annum, or 45 percent of Japan's total LNG imports.
(hen)