Indonesia, Western Buyers okay transportation scheme for LNG contract extension

Indonesia has reached agreement with Bontang LNG customers grouped in Japan?s Western Buyers over transportation arrangement for LNG contract extension, BPMIGAS Chairman R. Priyono said on Monday.

Priyono said both parties had agreed that Indonesia will provide transportation for 75 percent of the contract volume with the balance would be arranged by Japanese buyers.

Indonesia and the Western Buyers recently agreed to extend the contracts that are due in 2011 for another 10 years with a lower contract volume.

Under the contract extension, Indonesia will export a total of 25 million tons ? three million tons in the first five years and two million tons in the last five years ? over a period of 10 years until 2021.

Priyono hoped that the deal could be sealed soon.

After the deal is sealed, BPMIGAS will open tender for national shippers to transport the LNG, he said. (godang/bernard)