Japan tells RI LNG producers ?price matters for us?

A senior official of the Japanese government told Indonesian governmental officials and businesspeople that price was now one of the factors the Japanese liquefied natural gas (LNG) buyers put into consideration in making purchasing decision.

Hajime Hyoui, director general for natural resources and energy policy at Japan?s Ministry of Economy, Trade and Industry (METI), told that the fifth Indonesia-Japan Energy Roundtable on Thursday in Jakarta that while in the past, Japanese buyers had been more concerned about security of supply, they now considered price as equally important in purchasing decision.

This, he said, was because Japan had liberalized its energy sector, which had resulted in the emergence of many energy players who competed against each other to provide cheaper energy to the public.

As a result, they would hunt for cheaper LNG, he said.

Buyers in Japan, a traditional LNG market for Indonesia, have often asked Indonesian LNG producers to cut down their prices as a requirement for the extension of several sales and purchase contracts which are due in several years. (Alex)