Jakarta urged to review gas export contracts
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The Indonesian Chamber of Commerce and Industry (Kadin) wants the government to renegotiate its existing liquefied natural gas (LNG) contracts with overseas buyers to bolster domestic supplies.
The government’s priority had to be renegotiating its contract with China, which has allowed LNG to be sold below market prices, Kadin chairman for industry, research and technology Bambang Sujagad said in Jakarta on Monday.
“We must talk about this soon, as there are only eight months left before the contract for the fourth cargo ends in 2013,” Bambang said.
“If the contract cannot be cancelled, at least we can reduce part of the gas allocation to fulfill domestic needs,” Bambang told reporters in Jakarta.
Kadin, he said, wanted part of the nation’s LNG export allocation to be used for the domestic market to meet growing demand from local industries.
