Indonesia to lower LNG price under contract with South Korea

Jun 23, 2004 02:00 AM

Indonesia has indicated that it is ready to give South Korea a cheaper price for LNG under a new long term contract.
Head of the oil and gas upstream regulatory agency (BP Migas) Rachmat Sudibyo said it may accept a request of Korea Gas (Kogas) for a 40 % price discount provided that the Korean buyer agrees to sign a new 20 year contract after the termination of the present contract in 2007.

Kogas has asked a cut from a price of $ 5 per mm Btu set by BP Migas to $ 3, the same level given by Indonesia to Chinese buyers. Kogas, however, wanted only a short term contract of 7 to 10 years.
Rachmat said it is difficult to accept the Korean request under short term contract.

Under the present contract Indonesia supplies 2.8 mm tons of LNG to South Korea at a price of $ 4.5 per mm Btu over a 20-year contract.
Despite competition from other suppliers, Rachmat said he was optimistic that Kogas will choose Indonesia as its supplier.

Source: Asia Pulse
Alexander's Commentary

Change of face - change of phase

In the period of July 20 till August 3, 2015, Alexander will be out of the office and the site will not or only irreg

read more ...
« September 2019 »
September
MoTuWeThFrSaSu
1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30

Register to announce Your Event

View All Events