Indonesia to honour LNG contracts: Purnomo
Wednesday, December 15 2004 - 11:02 AM WIB
"They (Japan) are concerned about gas. They are watching the industry closely. I told them that we will honour the (LNG) contracts," Purnomo told reporters after a meeting with Japan Minister of Economy, Trade and Industry Shoichi Nakagawa, who is on a three-day visit to Indonesia.
"We will do our best to supply gas to Japan."
An official at Indonesia's oil and gas watchdog, BPMIGAS, said on Wednesday that Indonesia had cut some LNG supplies in 2005 to buyers, but he declined to give details.
Purnomo said he had no details on reports of some cancellations of LNG supply from Indonesia to its buyers, and notice to others that there could be possible cuts.
"We always inform our LNG buyers if there are changes in nomination for LNG delivery. That is also based on the buyer's agreement too," he added.
Indonesia has cancelled 10 cargoes of liquefied natural gas (LNG) for delivery to Taiwan's Chinese Petroleum Corp. (CPC) in 2005 due to ongoing supply problems, an official at government-run CPC said last week.
The CPC official said the shortfall amounts to about 600,000 tonnes of the super-cooled, compressed gas, or 17 percent of CPC's annual 3.5 million tonne contract with Pertamina, Indonesia's state oil and gas firm.
BPMIGAS said in November that Indonesia, the world's biggest LNG exporter, was struggling to meet supply commitments and might have to buy up to 50 spot cargoes to cover its contracts.
BPMIGAS said it was in talks with buyers -- Japan, Taiwan and South Korea -- over rescheduling cargoes or reducing volumes. Its exports have been cut by declining domestic production and the diversion of supplies to the domestic market.
Osaka Gas Co. Ltd. and Tokyo Gas Co. Ltd. said last week they had been informed by Indonesia of a possible cut to term supplies next year but officials at both companies had no details on volumes.
Korea Gas Corp. (KOGAS) , the world's single-biggest LNG buyer and the sole importer into South Korea, has said it would receive full volumes from Indonesia next year at about 5.3 million tonnes, unchanged from 2004.(*)