Pertamina to look for LNG market outside Japan
Friday, September 8 2000 - 04:30 AM WIB
The state-owned oil and gas company Pertamina is seeking for LNG (liquefied natural gas) market due to a declining demand in its traditional and largest market, Japan.
Pertamina director for general affairs Syahrial Daud was quoted by the Suara Pembaruan evening daily that lower demand in Japan could continue until 2007 and even until 2010.
He said that part of the decline in demand was partly due to the government policy to prioritize the use of nuclear energy.
Two large Japanese LNG buyers have already started cutting down their LNG demand from Indonesia. The buyers are Tokyo Electric Power and Tohoku Electric Power, which signed new contracts recently with Pertamina to be realized by 2005. Under the contract, the two reduced their LNG purchase volume by 3 million metric ton per year to 0.5 million metric ton per year.
Syahrial said that Pertamina was seeking new market in India and China, but so far had not been successful. (*)