Indonesia offering attractive package to Japanese LNG buyers

Indonesia will offer a ?very competitive? package to attract Japanese LNG buyers to continue buying LNG from Indonesia.

?We are preparing a proposal for Japanese buyers, which is very competitive in terms of price, volume, source and flexibility,? state owned oil and gas company Pertamina?s president Baihaki Hakim told reporters on Friday in Jakarta on the sidelines of the ceremony to sign new tanker contracts.

With the proposal, Indonesia expected to win new contracts to supply buyers in Japan?s western coast with more than 12 million tons of LNG per year.

?(The price in the proposal) is much different from the Fujian price,? he said, without providing further details.

Baihaki referred to the LNG sales and purchase contract with China?s Fujian province. The contract, which was awarded by China to the Tangguh LNG plant last year following its failure to win the contract to supply LNG to China?s Guangdong province, has set a controversy because the price set by Indonesia for its LNG was lower than the ?market price?. Indonesia reportedly gave a discount price as part of its all-out effort to win the Chinese contract.

The Fujian contract prompted buyers in other countries, including Japan, to demand for the same discount price.

According to Baihaki, Indonesia will offer the Japanese buyers with LNG from the Bontang LNG plant in East Kalimantan and the Tangguh LNG plant, which is being developed by a consortium led by Anglo American energy firm BP PLC in the Bird?s Head area of Papua. (Godang)