VIVAnews - The Indonesian government approved the request from a Japanese buyer to prolong the Bontang refinery's LNG purchasing contract.
Information and Communication Adviser to the Energy and Mineral Resources Minister Kardaya Warnika said that the agreement had been approved since 2008.
"The agreement states that Indonesia will provide 25 million tons of LNG to Japan for 10 years after the Bontang contract ends in 2011," he said in Jakarta on Wednesday, July 29.
Despite the agreed contract extension, the LNG export has yet to start. He explained that the contract stated that 3 million tons of LNG has to be shipped per year for the first 5-year-period and two million tons per year after the second 5-year-period.
He also explained that the operator at Mahakam Block which is the gas supplier to Bontang refinery has to export the LNG overseas. "LNG export to Japan will be done," he said.
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Translated by: Ariyantri E. Tarman
