Baihaki to meet Japanese LNG buyers

President of state oil and gas firm Pertamina Baihaki Hakim will soon fly to Japan to meet Japanese LNG (liquefied natural gas) buyers, and to convince them of Indonesia's strong commitment to fulfill gas supply despite political disturbance in Aceh province particularly in the location of Mobil Oil and PT NGL Arun gas facilities.

The Suara Karya daily reported on Tuesday that Baihaki's visit to Japan was also to seek market for the Tangguh gas project in the West Papua province. The project would be the country's third largest gas center.

Baihaki informed his planned trip on the sidelines of a meeting with other senior government officials.

Japan is Indonesia's largest LNG exports market with total volume of 18.5 million tons per year.

Baihaki dismissed earlier reports that Japan was reducing its LNG purchase commitment from Indonesia, pointing out that the Arun II contract had been extended (although at a lower volume and shorter period of contract) beyond 2010.

He admitted that unrest in the oil and gas rich Aceh province had raised a concern, but said that the unrest had not halted the gas production at Mobil Oil and Arun facility.

He added that the halt of two Arun gas facilities (out of six facilities) had long been programmed because of declining as reserves. (*)