Japan calls for Indonesia to honour LNG deals

JAPAN’S minister of economy, trade and industry, Shoichi Nakagawa, has urged the Indonesian government to fulfil current contract terms and ensure LNG supplies to Japan remain uninterrupted.
Japan calls for Indonesia to honour LNG deals Japan calls for Indonesia to honour LNG deals Japan calls for Indonesia to honour LNG deals Japan calls for Indonesia to honour LNG deals Japan calls for Indonesia to honour LNG deals

Indonesia recently announced it would cut its 2005 LNG exports to Japan, South Korea and Taiwan below contracted levels due to falling production. Indonesian LNG accounts for 30% of Japan’s gas needs.

“Japan is extremely nervous about securing a stable energy supply because of higher crude oil prices," Nakagawa said.

With LNG contracts intended to ensure long-term stable supplies, it is very unusual for an LNG producer to unilaterally change shipment volumes. Indonesia's change of plans has forced several Japanese firms to seek alternative supply sources.

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