Indonesia, Western Buyers to conclude LNG talks by year-end

State oil and gas company PT.Pertamina said Thursday that Bontang LNG extension deal with Japanese customers grouped in Western Buyers would be concluded by year end.

Vice President Director Iin Arifin Takhyan expects Iin said the only major issue remained unsettled in the negotiation was price.

Some 12 million tonnes per annum of LNG supply contract from Badak LNG plant in Bontang, East Kalimantan to Western Buyers would expire in 2010.

Despite Japanese side pressure for at least 6MTPA contract extension, Indonesia has agreed to extend only 3MTPA of supply in the first five years of the contract and would drop to 2 MTPA for the remaining 15 years, starting 2011 due to policy shifting in prioritizing domestic gas users and dwindling gas reserves in East Kalimantan. (godang)