Sabtu, 10 Mei 2008

Gas Indonesia in Trouble of Fulfilling Its Export and Domestic Need

JAKARTA, KOMPAS.com - Minister of Energy and Mineral Resources Darwin Saleh said the commitment to export 25 million tons of liquefied natural gas (LNG) from East Kalimantan’s Bontang refinery plants to six firms in Japan still can change.
"It still can change. It depends on us because it is our gas," he said here on Friday.
    
However, the change in the volume of LNG export must be agreed upon by both sides. He said that the government would be consistent to meet domestic demand for gas first before it exported the commodity to consumers overseas.
Darwin Saleh said Indonesia was exporting its gas because it wanted to improve its economy.  "If the contract is not extended we will be subject to fines. But we also will ask buyers to understand urgent domestic demand. This is still under considerations," the minister said.
    
PT Pertamina, Total EP Indonesie and Inpex Corporation signed a head of agreement (HoA) in Osaka, Japan, on February 13, 2009, for the extension of LNG Bontang exports to six firms in Japan. The six firms are Chubu Electric Power Co, Kansai Electric Power Co, Kyushu Electric Power Co, Nippon Steel Co Lted, Osaka Gas Co Lted and Toho Gas Co Ltd. The export contracts will expire for 10 years until 2020.

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