Indonesia, Western Buyers kick off LNG supply extension talks

State oil and gas company PT.Pertamina said it has kicked off talks with Japanese companies grouped as Western Buyers to negotiate LNG contract extension from Bontang that would expire in 2010-11.

Pertamina Vice President Director Iin Arifin Takhyan told Petromindo.Com in a phone interview from Tokyo late Thursday that Principle of Agreement (PoA) with Western Buyers had been signed on Wednesday. Under the PoA both side would negotiate volume of extension, price, terms and condition and other detail. ?But the Indonesian team has no authority to decide and all decision (regarding the volume and price) would be made by the government.

Indonesian as seller is represented by Pertamina.

Vice President Yusuf Kalla, who is also currently in Japan has said that Indonesia might be able to supply 3-4 MTPA of LNG in the first phase in 2011 and the volume might be increased to 8MTPA when LNG projects such as Tangguh, Natuna D Alpha has expand capacity or become onstream after 2013. (godang)