Jakarta: South Korean energy firm Korea Gas Corp has cancelled a liquefied natural gas (LNG) purchase deal from the Tangguh project, an official at Indonesia's energy watchdog, BPMIGAS, said on Monday.
In 2008, Indonesia reached an initial agreement to supply 1 million tonnes per year of LNG to state-run KOGAS from 2010-2012. The LNG is slated to come from the Tangguh project in Papua, and to be part of the LNG lifted by U.S. firm Sempra Energy and sold to other customers.
"The deal with KOGAS has been cancelled due to the economic situation in South Korea which has not improved," Amir Hamzah, BPMIGAS official, told Reuters.
"We will seek another possible buyer of the 1 million tonnes per year of LNG. We can't produce LNG without a buyer," Hamzah said. [02/02/10]
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