Pertamina to provide compensation for LNG buyers from Japan

The state-owned oil and gas company Pertamina is ready to provide compensation for LNG (liquefied natural gas) buyers from Japan following complains that Indonesia's LNG was too expensive, according to Pertamina director Sjahrial Daud.

Sjahrial was quoted by the Neraca daily as saying that Pertamina would not lower the price but would instead provide a compensation.

He said that the price was already set in the contract, which must be honored.

Sjahrial said that the form of compensation has yet to be discussed but one possibility would be an LNG delivery of more than one cargo per year.

LNG buyers from Japan have been complaining about the expensive price of Indonesia's LNG products.

Sjahrial said that as more countries produce LNG, the price had now become competitive. He added that the Japanese industries had been hit by a slowing down. (*)