Govt urged to grant Japan’s request to send more LNG

The Indonesian government has been urged to grant the Japanese government’s request for provision of additional supplies of liquefied natural gas (LNG) for the disaster-hit country.

University of Indonesia energy expert Kurtubi said Friday that if the government took too much time before making a decision, other LNG-exporting countries, such as Russia, might take advantage by seizing the lucrative business opportunity.

“The government needs to answer the Japanese government’s request before losing this good momentum. Russia has also been eager to supply more LNG for Japan and is even ready to build a pipeline network to channel the gas,” he told a discussion at the House of Representatives in Jakarta.

Kurtubi said that to provide additional LNG for Japan the government might take LNG from the Tangguh plant in Papua that was previously allocated for US-based Sempra Energy. Japan was ready to buy the LNG at a very good price, he added.

“For the short-term period we can send LNG from the Tangguh plant, but for long-term, we’ll send gas from the Natuna block [Riau province]. Japan is a very good potential market for our LNG,” Kurtubi suggested.