?Don?t only buy our gas, but also help produce it? Purnomo tells Japanese

Minister of Energy and Mineral Resources Purnomo Yusgiantoro has told the Japanese buyers of Indonesian gas to invest in Indonesian gas sector in order to boost the country?s gas output and, as such, secure supplies to Japan.

Purnomo said he had met on Monday with officials from Japanese companies Tokyo Electric, Kansai Electric, Toho Gas and Osaka Gas, who are the regular customers of the Bontang LNG plant in East Kalimantan.

?I told them ?Please don?t look from micro-perspective ? only at contracts with Bontang that will expire in 2010. Please look from a broad perspective: If you invest here, you will get more supplies,? Purnomo recalled.

Few Japanese companies invest in the country?s oil and gas sector, despite that fact most of Indonesian oil and gas output are shipped to the country.

However, Indonesian LNG supplies to Japan are now facing uncertainty following the decline in gas reserves. Indonesia has failed several times to meet its export commitment to buyers due to the decline in LNG output.

Furthermore, the government has said it would not extend several contracts with Japanese buyers that expire in 2010, saying it would rather use the remaining gas for the domestic consumption.

Purnomo said he has told the Japanese companies that there was an ample opportunity for Japanese firms to boost Indonesian gas output.

?I told them we have 400 trillion cubic feet of coal bed methane, which are ready for development. They can also invest coal liquefaction, coal gasification. They can also develop projects such as the Masella block, Donggi block or explore for gas in other areas,? Purnomo said. (Godang)