Posts tagged export
The Indonesian government is set to re-negotiate some of its LNG sales contracts, looking for deals considered uneconomical or below market price, in order to increase natural gas revenues.
The government hasn’t specified exactly which contracts it will review yet, but is known to have its eye on the Tangguh natural gas at Bintuni Bay in West Papua. The plant is owned by BP, the China National Offshore Oil Corp. and Mitsubishi Corp and CNOOC’s 2002 contract allows the company to buy gas at $2.40 per million British thermal units for 25 years–a much lower price than Indonesia’s two other LNG plants at Arun (Aceh province) and Bontang (East Kalimantan). Those facilities sell gas to Japan at $13-18 per million BTU.
Tangguh’s LNG is also exported to South Korea and California, according to the Jakarta Globe.
The Director General of oil & gas at Indonesia’s Energy Ministry, Evita Legowo, said the government would “definitely review gas sales prices that are below the economical price,” including sales through pipelines to countries like Malaysia and Singapore. When re-negotiating contracts, the government has been advised to keep in mind other factors that increase costs for producers above the wellhead price, such as distribution.
source & article: The Jakarta Globe
Malaysia yesterday announced 15 initiatives, including nine new projects and seven recaps, as part of its Economic Transformation Programme (ETP). According to Prime Minister Najib Razak, the ETP is already bearing fruit despite running for only a short time.
Yesterday’s announcement was the sixth regular update of the ETP, and sees the programme reach 50% (or 65) of its 131 ‘Entry Point Projects’ launched. The 15 new initiatives promise to bring in RM2.77 billion (US$913.8 million) in investment, add RM66.31 billion ($21.87 billion) to Malaysia’s Gross National Income and create 36,595 new jobs by the target year of 2020.
The initiatives (with their national key economic areas) are: (more…)
Large multinationals Proctor & Gamble (P&G) and Samsung this week announced increases to their Indonesian manufacturing capacity, while Toyota also reaffirmed its commitment to Indonesia as a major production hub. As well as exports, their products are also aimed at Indonesia’s growing domestic demand.
Toiletries and Home Products giant P&G said it had experienced a double-digit growth in Indonesian demand for its products, which it will meet with a new local plant and office building to manufacture the Gillette, Pantene and Olay product ranges.
Korea’s Samsung C&T said it will invest US$150-200 million in a 50 megawatt solar power plant, after conducting feasibility studies into possible locations in Java, Bali or elsewhere.
Meanwhile Toyota, which has already exported 225,382 complete vehicles via its local subsidiary PT Toyota Astra Motor (TAM) since 1987, says Indonesian domestic demand is growing rapidly and may reach 1 million units a year within two years. It has already sold 85,494 units this year, a 24% increase on the same period in 2010, and has a 37.9% share of the Indonesian market.
TAM President Johnny Darmawan said his company intends to make Indonesia a major manufacturing base, but also sounded the familiar call for increased commitment from the government in the form of road, port and power improvements and reliable human resource skills.