RI may change LNG price formula for Japan from 2011

Indonesia has indicated it may adjust the formula that it uses to price contracts to supply liquefied natural gas (LNG) to Japan from 2011 in order to maintain customers, news agencies Bloomberg and Dow Jones reported on Friday from Tokyo.

At an energy forum in Tokyo on Friday, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said Indonesia in the years to come would be more flexible with its LNG supply contracts in terms of the price formula.

?More flexibility is required for LNG contracts, LNG supply contracts should be win-win contracts,? Katsuhhiko Suetsugu, secretary general of the Asia-Pacific Energy Forum, quoted Purnomo as saying.

It?s important for Indonesia to maintain and even expand its LNG business with Japan, and in order to do that, Indonesia needs to provide favorable terms in its LNG contracts, Suetsugu quoted Purnomo as saying

Many of Indonesia?s long-term LNG supply contracts with Japanese buyers expire in 2010-2011, with expiring contractual volumes expected to total 12 million tons. (*)