GOVT TO REVIEW THREE GAS EXPORT CONTRACTS

Jakarta, Jun 17 (ANTARA) - The government will review three gas export contracts in which the commodity's price was set at a low level, even below the domestic gas price, an energy ministry official said.

Wardaya Warnika, a negotiator for liquefied natural gas (LNG) contracts at the energy and mineral resources ministry, said here Tuesday, the three export contracts had been made with Malaysia, China and South Korea.

"We will try to get a higher export price," he said.

The gas exported to Malaysia came from the Natuna Block which is operated by ConocoPhillips.

The price of gas exported to Malaysia was based on the ceiling price of high sulfur fuel oil (HSFO) at US$118 per metric ton, equal to US$25 per barrel of crude oil.

"Thus the gas price was only some US$2.75 per MMBTU," he added.

The price was still too low as the gas was also sold to PT Pupuk Kaltim at US$10 per MMBTU.

The gas exported to Fujian in China and South Korea originated in the Tangguh field in Papua province.

"The gas ceiling price to Fujian was US$38 per barrel and that to South Korea US$25 per barrel," Kardaya said.