Jakarta (ANTARA News) - Japanese gas company Tokyo Gas has canceled its plan to purchase 500,000 tons of gas per annum from the Tangguh gas field in Papua province, an oil and gas official said.
Deputy head of the Upstream Oil and Gas Regulating Body (BP Migas) Djoko Harsono said that the 500,000 tons of gas came from the purchase diversion of Sempra of the United States.
He made the remarks before attending a closed-door hearing with Commission VII of the House of Representatives (DPR) which deals with energy affairs here on Monday.
Harsono said that Tokyo Gas canceled its plan to purchase the Tangguh gas because it considered that the price of the commodity was too high.
"They (Tokyo Gas) pull out of the plan because they thought the price was too high," the BP Migas deputy chairman said.
The oil and gas official said that a would-be buyer company from Thailand, PTT, had also decided to resign from its plan to take over the purchase of Tangguh gas diverted from Sempra.
Harsono said that the government was planning to divert the gas sales from Tokyo Gas to domestic market, namely to fertilizer companies and electricity power plants.
The potential fertilizer company buyers included PT Pupuk Iskandar Muda (PIM) and PT Pupuk Kaltim (PKT), while the potential power plant buyer was PT Indoneia Power in the tourist resort island of Bali.
He said that of the 500,000 tons of gas previously to be imported by Tokyo Gas, about 200,000 tons would be allocated for the fertilizer factories and the remaining 300,000 tons for the electricity generators of Indonesia Power.
Previously the government had also planned to shift the purchase of 300,000 tons of gas from Sempra per annum to PIM and PKT.
The shifting of the purchase was according to plan to be carried out through a swap mechanism.
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