SeahorseOilJobs.com Bi-Weekly Energy News Choice (End 29 June 2008)

Date:  June 25, 2008                  Deden Sudrajat

Source: http://money.cnn.com/news/newsfeeds/articles/djhighlights/200806250632DOWJONESDJONLINE000433.htm

Indonesia Plans To Up Gas Prices to China, Malaysia, S Korea

JAKARTA -(Dow Jones)- Indonesia is seeking to raise the prices of natural gas in contracts signed with buyers from China, South Korea and Malaysia, a government official said Wednesday.

Indonesia has a deal to sell 2.6 million metric tons a year of liquefied natural gas to China's Fujian LNG receiving terminal project at an average price of $3.35/mmbtu for 25 years starting in 2009.

It also has a deal to sell 600,000-800,000 tons a year to South Korea's K- Power at $3.50/mmbtu for 20 years, and 550,000 tons a year to Posco (005490.SE) at $3.36/mmbtu for 20 years.

The gas for those buyers will come from the Tangguh plants being built by a BP-led Tangguh consortium in Papua.

Meanwhile, Indonesia has a 20-year contract with Malaysia, signed in 1995, to supply natural gas from an offshore field in the Natuna Sea.

Kardaya Warnika, the head of a newly-set up team tasked to boost Indonesia's oil and gas output, told reporters Chinese and Malaysian buyers "understood our position."

He added the South Korean buyer would agree to renegotiate if Indonesia increases the gas volume to be shipped.