[Kabar-indonesia] Pertamina cuts prices of high-octane gasoline, CNG [+LNG/Japan; CNOOC]

[JoyoNews at aol.com]

6 reports: 

- 1: Bloomberg: Pertamina cuts prices of high-octane 
  gasoline, natural gas 
- 2: Platts: Pertamina cuts 88 RON gasoline prices 
  for industry in August
- Asia Gasoline-Indonesia seeks 200,000 bbls for Aug
- Platts: Indonesia still pondering LNG volume to Japan
  after 2010: Purnomo
- Indonesia says approves LNG price supplied to CNOOC
- Indonesia's Tangguh gas field to begin production in 2008

Pertamina cuts prices of high-octane gasoline, natural gas 

JAKARTA, Aug. 2 (Bloomberg): PT Pertamina, Indonesia's state-owned oil 
company, cut prices of high-octane gasoline and compressed natural gas 
in line with weaker global energy markets in a bid to control inflation.

Pertamina, based in Jakarta, reduced the cost of its Pertamax gasoline with 
research octane number 92 by 7.8 percent to Rp 6,100 (63 U.S. dollar cents) 
a liter at all of its gas stations in Java, the country's most populated 
island, spokesman Toharso said in an e-mailed statement yesterday. The price
changes took effect August 1, he said.

Prices at all outlets in Kalimantan and the northern part of Sumatra, in 
western Indonesia, were cut by 6.9 percent to Rp 6,550 and 6.9 percent to Rp 6,200 
respectively, the statement said. Pertamina lowered the price of research 
octane number 95brand Pertamax Plus by 7.6 percent to Rp 5,700 a liter in Java, 
the statement said.

Indonesia, Southeast Asia's largest economy, is trying to keep energy and 
consumer prices down in a bid to reduce inflation. The country's inflation rate 
slowed to a 10-month low in July because gains in prices of food and services 
were curbed by lower consumption.

Research Octane Number, or RON, indicates the quality of the gasoline. Higher 
numbers represent better quality, with 98 the highest grade. Pertamina uses 
Singapore prices, assessed by oil-pricing service Platts, to calculate retail 
fuel prices.

Pertamina lowered prices of compressed natural gas to Rp 2,562 a liter from 
Rp 3,000 a liter following a fall in global natural gas markets and to 
encourage the use of gas instead of oil-based fuel, the statement said.

Pertamina Tuesday cut prices of gasoline while maintaining those of kerosene, 
diesel and fuel oil sold to industries. 

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Platts Commodity News
August 1, 2006

Pertamina cuts 88 RON gasoline prices for industry in August

Indonesia's Pertamina cut the price of 88 RON gasoline sold to
factories and manufacturers by 3.63% effective August 1 due to a
stronger Rupiah against dollar and a 2.7% on-month fall in Mean of
Platts Singapore July assessments for the material, the company said
Tuesday.

Prices for other products including kerosene, diesel fuel and fuel oil
were unchanged, Pertamina said.

Following the price cut, 88 RON gasoline in Java, Bali, Kalimantan and
Batam Island sold at Rupiah 6,266/liter ($0.69/l). Meanwhile kerosene
continues to sell at Rupiah 6,372/liter, gasoil for transportation and
industrial use at Rupiah 6,609/l, and gasoil for manufacturing at
Rupiah 6,321/l. Marine diesel oil currently sells at Rupiah 6,065/l,
and fuel oil for industrial use at Rupiah 3,759/l.

Pertamina adjusts its non-subsidized fuel prices on a monthly basis
based on averages of Platts' price assessments for products in the
Singapore FOB market. The company adds from 15% to 20% to those
assessments to cover transportation and distribution costs, as well as
provide a profit margin.

--------------------------------------------------------------

Asia Gasoline - Indonesia seeks 200,000 bbls for Aug

SINGAPORE, August 1 (Reuters) - Indonesia has issued a tender to buy
200,000 barrels of 92-octane gasoline for prompt August delivery,
traders said on Tuesday.

The tender will close on Aug. 3 for delivery between Aug. 9 and 11 at
Balikpapan, on Borneo island they said.

State-owned Pertamina last month bought 200,000 barrels of 88-octane
gasoline at a discount of about 13 cents to Singapore spot quotes, on
a free-on-board (FOB) basis, for Aug. 16-18 delivery.

-------------------------------------

Platts Commodity News
August 1, 2006

Indonesia still pondering LNG volume to Japan after 2010: Purnomo

Indonesia's energy minister Purnomo Yusgiantoro, who was in Japan
Monday, has reiterated that Indonesia needs to weigh carefully how
much gas to supply to Japan after some long-term liquefied natural gas
agreements between the two countries expire in 2010.

"I explained our position that we prioritize gas for domestic use over
exports and they understood. But if we have a surplus of gas, it will
be exported," Purnomo said Tuesday after returning to Jakarta. He met
with Japanese LNG buyers such as Kansai Electric, Chubu Electric and
Osaka Gas while in Japan.

"We are still calculating our gas balance. Therefore we requested the
Japanese buyers to be patient. There's a political issue involved,
that's why we should be careful in our decision," Purnomo said.

A group of Japanese buyers have long-term LNG contracts with Indonesia
totalling about 12 million mt/year due to expire around 2010. Purnomo
has said earlier that Indonesia would not rush to conclude extensions
of the contracts, despite Japan's plea that it was an important issue
that needed to be resolved soon.

Purnomo also urged Japan to invest in Indonesia's energy sector and
said Japan may be interested in a proposed nuclear development in
Indonesia.

"Japan is also interested in investing in nuclear programs. We want to
develop nuclear power generation in the country by 2015. Currently we
think that the pressurized water reactor is the best nuclear option,"
Purnomo said without elaborating.

"Energy investment in Indonesia is not only (beneficial) for us but
also for Japan. If Japan invests in Indonesia's energy sector then our
energy supply will be boosted and we can divert part of our energy to
Japan," he said Tuesday.

Purnomo added that Indonesia has many potential energy resouces, such
as 400 trillion cubic feet of coal bed methane, coal desposits with
potential for liquefaction, as well as natural gas reserves in the
Masela, Donggi and Natuna blocks.

"There is plenty of time before 2010 (when the LNG contracts with
Japan will expire) to develop Indonesia's potential energy resources.
If we speed up the programs, we have enough time," Purnomo said.

Indonesia is facing difficulties in meeting its long-term LNG export
commitments, because the country's gas reserves are not being replaced
as quickly as expected. In addition, it is pursuing a policy of
prioritizing domestic consumption over exports.

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Indonesia says approves LNG price supplied to CNOOC

JAKARTA, August 1 (Reuters) - Indonesia's energy minister said on
Tuesday the government has formally approved the pricing of liquefied
natural gas to be supplied to China's CNOOC from the Tangguh project
in Papua province.

"The were no problems with the renegotiation, there's an improvement
in the price. The formal approval has been given," Purnomo Yusgiantoro
told reporters. He did not give a specific price. Energy giant BP Plc
operates the project

------------------------------------------------------------

Indonesia's Tangguh gas field to begin production in 2008

Jakarta, August 1 (Xinhua) -- The Tangguh gas field in Indonesia's
eastern province of Papua is expected to resume production and
delivery by the end of 2008, following the Tuesday's signing of a 2.5
billion U.S. dollars loan, a senior official said.

Tangguh has proven reserves of 14.4 trillion cubic feet of gas and
estimated total reserves of 23.7 trillion cubic feet which have not
been proven yet.

The loan comprises 1.2 billion dollars from the Japan Bank for
International Cooperation (JBIC), 350 million dollars from the Asian
Development Bank (ADB) and 1.07 billion dollars from a consortium of
seven international banks, including the Bank of Tokyo-Mitsubishi UFJ
Ltd, Singapore-based BNP Paribas, Hong Kong- based ING Bank NV Kong,
Mizuho Corporate Bank Ltd, Sumitomo Mitsui Banking Corporation and
Standard Chartered Bank.

Present in the signing ceremony were Energy and Mineral resources
Minister Purnomo Yusgiantoro, Oil and Gas Executive Body (BP Migas)
head Kardaya Warnika and provincial officials from West Papua.

"We are getting more confidence about the Tangguh project after the
signing," said Minister Purnomo.

The Tangguh project is estimated to cost 5.5 billion dollars.

The Tangguh field has secured gas supply orders amounting to 6. 9
million tons a year, consisting of 2.6 million tons a year from
China's CNOOC, 0.6 million tons from South Korea's Posco and K- Power
and 3.7 million tons from Mexico's Sempra Energy LNG Corp.

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Joyo Indonesia News Service
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