Maritime Affairs Coordinating Minister Luhut Binsar Pandjaitan said that Indonesia will be buying Liquefied Natural Gas (LNG) from Qatar at a price of $7.16 per million British Thermal units (MMBTU).
Energy and Mineral Resources deputy Minister Arcandra Tahar, who was given the task of negotiating, has almost completed his job, Luhut said.
“Pak Arcandra nearly completed the negotiation. The price is at $7.16 per MMBTU,” Luhut said at the Presidential Office in Jakarta on Monday.
Energy and Mineral Resources Minister Ignasius Jonan said that the ministry would allow the deal to happen if the price was lower than the LNG produced in Indonesia.
He added that the LNG from Qatar would be dedicated to supply power plants in North Sumatra, which were jointly developed by state-owned electricity firm PLN and a Qatar state-owned company.
Luhut said President Joko “Jokowi” Widodo expressed the hope that cooperation with Qatar in a number of sectors, including the LNG purchase, could be implemented early next year.
“The President wants all agreements to be [signed] in the first quarter of 2018,” Luhut said.
It should be noted that Qatar Sheikh Tamim bin Hamad Al Thani visited Indonesia last week and spoke about strengthening ties between the two nations.