According to BP Migas chief Rachmat Sudibyo, “The price cut is a difficult decision unless it has something to do with contract extension. A longer LNG supply contract term [will] allow Indonesia to offer a more competitive price to the South Korean company.”
“[I am] optimistic Indonesia [will] win a new LNG supply deal from KOGAS,” he added.
Under the terms of the current deal, which is due to expire in 2007, KOGAS is supplied 2.3 million tons per annum of LNG at a price range of US$4.50-US$5 per MMBTU.
