Japan wants to get LNG supply from multi sources

Japan, the main buyer of Indonesia?s Liquefied Natural Gas (LNG) has asked Indonesia to supply it with LNG from multi sources in the future contract to ensure the security of the supply to the country, Neraca daily reported on Friday.

Speaking to reporters in Jakarta on Thursday, Pertamina?s president Baihaki Hakim said that the Japanese buyers proposed the future contract to be based on a single package that could include more than one LNG suppliers such LNG Tangguh in Papua and LNG Donggi in Sulawesi.

With such a package, the LNG which would be sold to Japan would be procured from more than one producers, Baihaki said. "Japan is quite concerned on the security of its LNG supply. They don?t want to repeat the experience of South Korea some time ago when the LNG buyers from the country should have to take extra supply from other LNG producers following the halt of the Arun LNG plant?s operation," he added.

Japan, one of the Indonesian LNG largest buyer, gets their LNG mostly from the Bontang LNG plant, while South Korea, the other major buyer, buys its LNG from the Arun LNG plant. The Japanese LNG purchase contract will end in 2010. But the Japanese buyers have expressed their commitment to extend the contract until 2030. (*)