Government to cut prices of LNG exported to Japan

The government has not choices but to lower the prices of the liquefied natural gas (LNG) that will be exported to Japan amid the growing competition in the world’s LNG market, Kompas reported on Friday.

Rachmat Soedibjo, the head of oil and gas watchdog BP Migas said that the new prices would affect the sales of LNG to be made after the existing contract ends in 2010.

According to Rachmat, the price of LNG sold to Japan under the existing contract is set at US$5 per million metric British thermal unit (MMBTU), which is quite higher if compared to the current price.

But Rachmat said if there is a possible cut in the price, BP Migas will try hard that the approved price will still bring significant gains to the government. (*)