Japan Asks for More LNG, Oil Supply From Indonesia

Jakarta Globe, March 17, 2011

An undated company handout photo showing a transport ship docked
at the Bontang LNG plant in Bontang, East Kalimantan. Indonesia,
the world’s third-largest exporter of liquefied natural gas, has said it
was prepared to ship more of the cleaner-burning fuel to Japan if needed.
(Bloomberg Photo)

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Japan asked Indonesia on Thursday to supply it more liquefied natural gas (LNG) and oil after a devastating earthquake crippled a nuclear power plant.

"After the tsunami and earthquake, Japan's nuclear power plant is damaged and we have a massive shortage of electricity...therefore I asked Indonesia's government to add to its imports of liquid gas and crude oil to Japan," Japan's vice minister of foreign affairs Makiko Kikuta told reporters in Jakarta.

Indonesia, a former OPEC oil producer, is the world's third-largest LNG exporter and largest exporter of thermal coal for power plants.

On Monday, Gde Pradnyana, a spokesman at BPMigas, said Indonesia was prepared to ship more of the cleaner-burning fuel to Japan if needed.

The supplies “will come from excess capacity at Bontang plant,” Pradnyana said, adding that there are still 20 cargoes available for sale from the plant in East Kalimantan province.

BPMigas said in July that Indonesia will offer 60 cargoes of LNG from Bontang, Tangguh and Arun plants to buyers from countries including Japan through 2012.

Arun in Aceh province and Bontang produced more than 95 percent of Indonesia’s LNG in 2009, according to Bloomberg calculations based on official data.

LNG is natural gas chilled to liquid form for transportation by ships to places not connected by pipelines. Qatar and Malaysia are the world’s largest and second-biggest exporters of the fuel, respectively.

Reuters, Bloomberg

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