REPUBLIKA.CO.ID, JAKARTA - Government of Indonesia will ask China to revise the price of liquefied natural gas (LPG) sold to Fujian, China. The current price of LPG exported to Chinese National Oil Offshore Corporation (CNOOC) is 3.35 USD per million British thermal unit (mmbtu), far below the average price of national gas, which is 8 USD per mmbtu.
Deputy Commercial of Upstream Oil and Gas Regulatory Special Force (SKK Migas), Widhyawan Prawiraatmadja, said SKK Migas had met CNOOC to discuss the matter. "We will deliver the Contract Clause in May 2013," he said on Tuesday.
May is considered as the right time to hold price review. Both parties will sit together to discuss the appropriate price. But, Prawiraatmadja refused to mention further about the new price offered to China.
"Government will certainly ask for better price in which need to be agreed by both parties," he said.
The Head of Communication Department of SKK Migas, Agus Budianto, said government committed to discuss the price this year, but Chinese leadership change could be a problem. "Automatically, everything changes," he said.
Based on the contract, they can discuss the new price after four years from the first shipment of LNG. The first shipment was conducted in May 2009.
"We want to adjust with market price," he said. The current market price is around 13-14 USD per mmbtu. But, CNNOC asks for more supply if the price is increased.
