Japan, Korea seek to cut LNG supplies from Indonesia due to crisis

Buyers in Japan and South Korea have indicated they might ask Indonesia to cut LNG supplies, citing weak demand amid economic slowdown.

Hari Yulianto, state owned oil and gas firm PT Pertamina?s Vice President of LNG Business, said there were now excessive LNG stocks in Japan and South Korea due to the economic crisis that the countries can no longer absorb new LNG supplies.

He said buyers in Japan and South Korea have indicated they wanted LNG supplies from Indonesia be reduced by six cargoes each this year.

They also indicated they might divert some of their LNG import commitments to other buyers.

?There isn?t yet any official proposal for the reduction of supplies. They have indicated they might divert their export commitment to other buyers. If it is impossible, they will ask the price be adjusted downward,? Hari said. (Bernard)