Update: Indonesia, Western Buyers agree on LNG price in contract extension

(Adds statement from a source on the LNG price)

Indonesia and Japan have agreed to extend the contract of liquefied natural gas (LNG) due in 2011 following a negotiation of gas price between Indonesian state oil company PT Pertamina and a number of gas companies in Japan, which are known as Western Buyers.

Visiting Indonesian Energy and Mineral Recourses Minister Purnomo Yusgiantoro made the statement after attending a function to observe Pertamina`s 50th anniversary in Tokyo on Friday.

"The negotiation has been made and the gas price has also been agreed," Purnomo was quoted by Antara news agency as saying, adding that extension of gas contract was good for Indonesia.

Meanwhile, Pertamina's President Director Ari Soemarno explained that the extension of LNG contract was agreed on Thursday but the technical document has yet to be completed.

But both Purnomo and Ari refuse to specify the gas price which has been agreed but a source told Petromindo.com that Japan agrees to buy the LNG at between $13 and $15 per MMBTU (million British thermal unit).

?The price depends on the crude price. At the crude price of $100 per barrel, the price of the LNG is $13 per MMBTU. The price will increase along with the rise in crude prices,? the source said. (Godang)