S. Korea asks for LNG contracts extension

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said on Wednesday that South Korean government through Ministry of Knowledge Economy has asked for extension for Kogas? LNG supply contracts with Indonesia that would expire in 2014 and 2017.

?During the informal talks with Minister of Knowledge Economy Lee Youn Ho this morning, he expressed interest to extend the contracts for the same volume,? Purnomo said on a sideline of Second Indonesia Korea Energy Forum in Jakarta. He did not give specific detail about the volume.

Purnomo, however, said Indonesia is not in rush to extend the contracts. ?We are still focusing to complete contract extension with Japan?s Western Buyers that will expire in 2011 and to fulfill domestic gas requirements,? he said.

Under the present contracts, Kogas, South Korea?s biggest gas distributor, gets its Indonesian gas supply from Arun LNG plant in Aceh, which gas reserves is dwindling and Bontang LNG plant in East Kalimantan.

Indonesia still have a number of LNG projects on the pipeline including Inpex? Masela, Tangguh LNG plant extension and Chevron?s deep water gas project offshore East Kalimantan that would be piped to Bontang LNG, all of which are still uncontracted. (godang)