Japan?s LNG buyers prefer short-term contracts: Pertamina

Saturday, February 1 2003 - 07:07 AM WIB

Japanese buyers of Indonesia?s liquefied natural gas (LNG) will probably prefer short-term sale and purchase contracts if they are renewed, a senior executive of state oil and gas firm Pertamina told Petromindo.Com Saturday.

?Probably, they will be short-term contracts if renewed. I guess the contracts will be for 5-6 years, or 10 years at the most,? said Muchsin Bahar, downstream director of Pertamina.

Muchsin said Japanese importers had so far bought LNG from Indonesia under 20-year contracts. Reports said LNG sale and purchase contracts of some of them would expire in 2010.

The LNG buyers include the so-called 'western buyers' like Osaka Gas, Kansai Electric Power & Co., Kyushu Electric and Chubu Electric.

Muchsin said on Saturday a special team of Pertamina will leave for Japan on Monday to negotiate with Japan?s LNG buyers about the possibility of extending their sale and purchase contracts. (godang)

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