Kogas again asks for Indonesian LNG price cut

The officials of state-owned oil and gas firm PT Pertamina and Korea Gas Corp, the world's biggest buyer of liquefied natural gas, will hold a meeting tomorrow (Tuesday) in Kogas asks for Indonesian LNG price cut

A delegation from South Korean gas distribution firm Korea gas Corp. (Kogas) led by its president director Oh Kang-hyun will meet with state oil and gas company Pertamina on Tuesday, with the main mission asking for price cut for its existing LNG contract from Indonesia, a Pertamina official said Monday.

Pertamina director Ari Sumarno said that Kogas is seeking for price cut and more flexible supply terms, claiming that high crude price that is tied to Indonesian LNG price had made Indonesian LNG import the most expensive for Kogas.

?We?ll most likely turn down their request, as Indonesia in the past never asked for upward price revision when crude price was rock- bottomed; unless they are coming with win-win offer such as volume contract addition in exchange for price cut,? said Ari.

A BPMIGAS official, however, told Petromindo.com that Kogas might really come with proposal to increase import volume along with price cut plea. ?But we haven?t got any idea. Let?s just see what their real intention are tomorrow,? said the official.

Kogas had already disqualified Indonesia from 6 MTPA supply bid, part of which to substitute 3 MTPA LNG contract from Arun LNG plant in Aceh, which will expire in 2007.

Kogas imports 19.4 million tons of LNG a year under medium- and long-term supply contracts from Indonesia, Malaysia, Australia, Qatar, Brunei and Oman.(godang)