Japan asks Indonesia again to reduce LNG price

Japan has asked again Indonesian government to reduce the price of its liquefied natural gas (LNG), Minister of Energy and Mineral Resources Purnomo Yusgiantoro said in Jakarta on Thursday.

This request was made by the Japanese delegation this week when they met with President Megawati Soekarnoputri during the ASEAN summit in Bali, Purnomo told Koran Tempo newspaper after a meeting with Vice President Hamzah Haz in Jakarta.

"Japan wants the price of our LNG to be reduced, but as to how much, that remains unclear. That is a figure we have to find out," The Jakarta Post reported on its website quoting Purnomo as saying.

Japan, which needs 13.5 million tons per year, is the Indonesia?s traditional oil and gas market.

Two weeks ago, the Japanese delegation voiced a similar request at a meeting in Jakarta.

Indonesia is working hard to persuade Japan to continue buying or buy more LNG from the country amid aggressive efforts by its competitors -- Malaysia, Qatar, Australia and Russia -- to enter the market, offering cheaper prices. (*)