Eric Watkins
Senior Correspondent
LOS ANGELES, Mar. 1 -- State-owned PT Pertamina said several Japanese buyers are refusing to accept cuts in their supplies of LNG from Indonesia and may seek damages for breach of contract.
Ari Soemarno, Pertamina trading and marketing director, said Feb. 28 the LNG plant in Bontang, East Kalimantan, can supply only 314 cargoes this year instead of the agreed 374.
Ari said a smaller LNG plant in Arun would also have to reduce its shipments this year to 62 cargoes from the previously committed 71 cargoes.
Ari said buyers from Japan, Taiwan, and South Korea agreed to accept 46 fewer cargoes, but 14 shipments remain to be negotiated (OGJ Online, Feb. 28, 2006).
He said Pertamina may be able to secure three cargoes from Oman or Qatar to help meet its contracts.
Contact Eric Watkins at [email protected].
