Indonesia Urged to Quickly Respond to Japan's Demand on Additional LNG, Oil Supply

The Indonesian government on Friday was urged to quickly respond to Japan's demand on additional liquefied natural gas (LNG) supply for recovery process following the massive earthquake and tsunami on March 11.

Kurtubi, a professor in the University of Indonesia and director of Center for Petroleum and Energy Economics Studies (CPEES), told a discussion that addition supply to Japan could be done by shifting potentials or capacity at Tangguh LNG field that was initially to supply the United States and Mexico but not yet realized.

"To help Japan, it would be better if the government quickly decides or responds it so that we don't lose momentum," said Kurtubi.

According to Kurtubi, the demand was a clear sign that Japan will reduce nuclear power for longer term.

"For longer term, Japan's needs on LNG could be fulfilled from Natuna Block (of Riau Islands province). For the purpose, (the state oil-gas company) Pertamina needs to accelerate development of Natuna gas," said Kurtubi.

Gde Pradnyana, vice president of eternal affairs at the Executive Agency for Upstream Oil and Gas Business Activities (BP MIGAS) told reporters that it depends on the government to respond to the request as it relates to bilateral ties.

"We also have received a letter from Japanese embassy that asked for additional LNG supply last week. The letter did not say about volume. But it depends on the government what to do," said Pradnyana.

He said that if the government grants the request, the additional LNG supply only could be fulfilled if other buyers reduce their buying commitment.