Energy Minister, Singapore ambassador to renegotiate gas contracts
Saturday, July 24 2010 - 02:30 AM WIB
?I am still waiting for the Singaporean ambassador?s readiness to discuss gas contracts. I hope we can meet soon,? he was quoted as saying by Bisnis Indonesia. The minister said that he would inform the Singaporean ambassador about the Indonesian government?s plan to review gas sales contracts with the neighboring country during the meeting.
Darwin said that the government and the House of Representatives (DPR) recently agreed to cut the volume of gas sales from the Grissik field in Jambi in order to cope with the growing gas needs in the country.
Under the existing contract, Indonesia has to supply between 180 and 220 million standard cubic feet per day (mmscfd) from the Grissik gas field to Singapore. However, due to the decline in the gas production, a larger part of gas is taken from other field which is used to supply gas for the Sumatra-Java gas pipeline.
The government and the law makers wanted to review the gas sales contracts to Singapore to ensure that the larger part of the gas production in Jambi could be used for the domestic market.
Darwin said that he had also sent a letter to Foreign Minister Marty Natalegawa to help the renegotiation process with the Singaporean government. (*)