Japan and Korea Reduce LNG Demand

VIVAnews - The global economic crisis causes the purchasing power of Indonesian gas consumers abroad such as Japan and Korea to decrease. Japan 'refused' LNG supply from Bontang, East Kalimantan.

Pertamina Vice President of LNG Business Hari Yulianto said Japan is already oversupplied of LNG due to its declining economy.

"For the time being, Japan is no longer capable of receiving LNG supply from Bontang due to the global crisis," he said on Friday, March 13.

According to him, Japan requested import decrease up to six cargos. However, said Yulianto, Japan has committed to divert its contract obligation to other countries. "The price is still being negotiated," he said.

In addition to Japan, Yulianto said that Korea, also imports LNG from Indonesia, requested that LNG supply is lessened due to the global crisis. As reported, this year Indonesia must import 309 LNG cargos to Japan and Korea from refineries in Bontang.

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Translated by: Bonardo Maulana Wahono