February 26, 2010
Japan, Taiwan and South Korea may cancel 12 planned liquefied natural gas shipments this year from Indonesia’s Bontang and Arun LNG plants, Ira Miriawati, head of oil and gas utilization at upstream oil and gas regulator BPMigas, said on Thursday. The three countries cancelled the purchase of 22 LNG cargoes last year.
Indonesia may divert the affected LNG to the domestic market, Ira said. There has been mounting pressure for the government to divert gas exports to the local market as power plants and other industries, such as fertilizers and ceramics, struggle to secure enough gas.
State-owned gas company PT Perusahaan Gas Negara plans to impose a surcharge, starting in April, on gas purchases that exceed the volume set under contract. Some officials have recently said the government would not extend maturing export contracts to ensure domestic supply. Bloomberg/JG
Source: http://www.thejakartaglobe.com/business/japan-taiwan-korea-may-sink-natural-gas-shipments/360923
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