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)