Japanese PM asks SBY to ensure stability in LNG supply
Monday, April 6 2009 - 02:19 AM WIB
The request was made during the two leaders? meeting ahead of the G-20 summit in London last week.
?In the meeting, Aso told Yudhoyono that the stability in the LNG gas supplies from Indonesia would be quite important for Japan to meet LNG needs,? the Japanese embassy in Jakarta said in a statement.
Aso also asked the Indonesian President during the meeting to help settle all the process in the implementation of economic agreements between the two countries including those related to energy.
Earlier, two Japanese power companies Kansai Electric Power Co. Inc and Chubu Electric Power Co. had asked PT Senoro-Donggi LNG (SDLNG), a consortium comprising PT Pertamina, PT Medco Energi Internasional and Mitsubishi Corp., which plans to build a LNG plant in Senoro, Central Sulawesi to get the Indonesian government?s approval for their Sales Appointment Agreement (SAA) or sales contract agreement.
If not, the two Japanese companies would cancel the Head of Agreement (HOA) on their plan to buy LNG from the consortium, which expires on March 31.
In March, BPMIGAS, the regulatory body for upstream activities, asked SDLNG to change the price formula for the plant?s LNG product.
The agency?s Chairman R. Priyono said on March 17, 2009 that the price formula should be changed so that it would have a floor price to prevent the government from incurring financial losses from the fluctuation of gas prices.
SDLNG plans to build a 2-MTPA LNG plant. Gas for the proposed plant will be supplied from Matindok Block, which is operated by Pertamina, and Senoro-Toili Block, which is jointly operated by Pertamina and Medco. The LNG plant would be built by Mitsubishi and Pertamina and Medco will sell gas to the LNG plant at well head. (*)