Indonesia plans to raise gas prices to China, M’sia, S. Korea
JAKARTA - INDONESIA is seeking to raise the prices of natural gas in contracts signed with buyers from China, South Korea and Malaysia, an official said on Wednesday.
The head of a team tasked with boosting the country's oil and gas output, Kardaya Warnika, told reporters that Chinese and Malaysian buyers 'understood our position'.
He added that the South Korean buyer would agree to renegotiate if Indonesia increased the gas volume to be shipped.
It is not the first time Jakarta has tried to increase gas prices since oil prices started to rise sharply recently.
Mr Warnika said gas prices already agreed with offshore buyers were currently lower than prices in the domestic market.
'The prices of gas exports should be higher than domestic prices,' Mr Warnika added.
- What about Singapore? I think if Indonesia can successfully raise prices to all these countries, the next in line will be Singapore as well. This means higher and direct influence to electrical tariff in Singapore. Be prepared to save electricity ASAP as Singapore uses natural gas to generate 80%+ of Singapore's electricity.
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