Indonesia is offering liquefied natural gas (LNG) supplies to Japan and South Korea from its largest natural gas field of Tanggguh in Papua province, local press said Monday.
LNG supplies to the two countries will consume half of the production in Tangguh, reported leading economic daily Bisnis Indonesia.
The move came amid intense talks between Japan and Indonesia on the continuation of LNG supplies as most supply contracts with Japanese firms expire between 2010 and 2015.
Japan agreed to sign the Economic Partnership Agreement (EPA) in exchange for the LNG supplies, the daily said.
"We need investment from (Japan), they need our energy source," Vice President Jusuf Kalla was quoted as saying recently.
Indonesia is the largest LNG supplier to Japan with export reaching 15.5 million tons a year.
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