Eric Watkins
Senior Correspondent
LOS ANGELES, May 26 -- Indonesian Vice-President Jusuf Kalla has made clear to Japanese investors that his country's future priority with natural gas will be meeting domestic demand instead of exporting LNG.
"We'll only export it if we have a surplus," Kalla told executives of Toru Oil Japan in Tokyo.
He acknowledged Japan's reliance on Indonesia for LNG, amounting to about 50% of its needs. But he said demand in Indonesia has been increasing, and exports have contributed to a domestic shortage.
He said fertilizer plants have closed due to the lack of gas supply, and the state electricity firm has been unable to secure gas supply for power plants. He urged Japanese investors to help develop the Indonesian gas industry.
Kalla said Indonesia would honor terms of all current LNG contracts with Japan but might not extend them when they expire in 2008 and 2010.
Contact Eric Watkins at [email protected].
