Indonesia seeks more chances to export LNG to Japan

Indonesia is seeking more chances to add its liquefied natural gas (LNG) exports to Japan, currently the country?s largest LNG buyer, to ensure that the country will be able to fully benefit from the large gas deposit in existing gas fields and the newly developed Tangguh project in Papua.

"The government hopes Japan will be able to increase its LNG imports from Sumatra or Tangguh project to meet its present and future demand," Minister of Energy and Mineral Resources Purnomo Yusgiantoro said on Wednesday.

The minister said that Indonesia should be more aggressive in selling its LNG to allow it to benefit from the continued increase in the gas reserves. According to the minister, the gas reserves has increased to about 170 trillion cubic feet at present as compared to 115 trillion cubic feet 10 years although exports and domestic demand continued to rise.

Meanwhile Heri Alhmadi, a member of Indonesia-Japan cooperation team, said that a number of Japanese LNG buyers such as Osaka Gas and Tokyo Gas had expressed their strong commitment to extend their LNG import contract from Indonesia.

"They also will consider to buy other forms of converted gas such as GTL (gas to liquid) to meet the increase in the gas demand from household customers," he said.

Newspaper recently reported that Taiwan had secretly offered to buy Liquefied Natural Gas (LNG) from Indonesia during the country?s Prime Minister Lu Hsiu-lien?s visit early this month. The offer was made only several weeks after China announced that it had awarded Indonesia a contract to supply the country?s province of Fujian about 2.5 million tons of LNG a year for 20 years.

Indonesia, through BP Indonesia, actually bid a 25-year contract to supply another Chinese province Guangdong about 3 million tons a year , but the company was defeated by an Australian company in the tender. China instead awarded Indonesia a contract to supply the Fujian province. (*)