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Indonesia to renegotiate gas price for Chinese buyers
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The Indonesian government considers renegotiating gas prices for buyers in China's Fujian Province to adjust with the surging oil prices, local press said Saturday.

The Executive Body of the Upstream Oil and Gas Industry (BP Migas) will ask a higher tariff for the gas supply contract that was signed in 2002 and revised in 2006, reported major national newspaper Kompas.

Under the contract, both parties can renegotiate tariff every four years.

In 2006, the gas price was increased from US$2.6 per million metric British thermal unit (MMBTU) to US$3.5 per MMBTU.

The free-on-board price after delivery to Fujian was set at between 6 and 7 dollars per MMBTU.

The price rise lifted Indonesia's potential revenues from the 20-year supply contract by 2,2 billion dollars, the newspaper said, quoting BP Migas head Kardaya Warnika as saying.

(Xinhua News Agency March 15, 2008)

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