LNG producers organization proposed

Minister of Energy and Mineral resources Purnomo Yusgiantoro said on Monday several LNG producers are planning to form organization to help strengthen producers? position in the increasingly competitive market.

?Two Middle East producers; Oman and Qatar, had agreed with the idea and Indonesia will approach Brunei, Malaysia and Australia,? Purnomo told reporters.

Purnomo said the main idea of forming the organization was to increase the level of security of supply whenever an LNG producers having trouble to fulfill commitment to buyers.

?If, for example, Indonesia is having LNG shortage, other producers, who are members of the organization would be able to lend their spare capacities,? he said. ?Through this organization, LNG producers will be able to help each other,? said Purnomo.

He said that the idea had originally come from Qatar. He further added that the proposed organization would not act as producers? cartel like OPEC.

Purnomo hoped that the idea would be discussed further during the Energy Investment Forum in Bali this coming December. (godang)