Japanese major buyer of Indonesia's liquefied natural gas (LNG) Osaka Gas Co. has urged the government to make a final say about supply contract extension by the end of the year, local press reported Thursday.
Osaka is among 11 Japanese gas buyers which buy over 12 million tons of LNG a year from Indonesia, who recently announced to either reduce supply or discontinue the contracts expiring in 2010.
The company was confused by the recent negotiations with Indonesia's state-run oil and gas firm Pertamina as no firm decisions have been made over the last few years, reported leading economic daily Bisnis Indonesia.
"Japanese buyers no longer understand who the real decision maker is," Ryu Nishida, general manager of energy resources business unit with Osaka, was quoted as saying.
Ryu, who visited Jakarta to attend a gas industry exhibition Wednesday, criticized Indonesia for "taking a very long time to coordinate interests" among the central government, the regional government, Pertamina and domestic gas industries.
The gas delivered to Japan is produced in the East Kalimantan town of Bontang.
He said Indonesia should have concluded the future of LNG supply contract with Japanese buyers by the end of the year.
Knowing early the possible supply cuts from Indonesia would give enough time for Japanese buyers to seek different suppliers to fill the shortage, he said.
Several other Japanese firms -- Kansai Electric Power, Chubu Electric, Kyushu Electric, Toho Gas and Nippon Steel Corp. -- have agreed a cut by a half in Indonesian LNG supplies, the daily said.