Arun NGL to ship 38 cargoes in 2011

The Arun liquefied natural gas (LNG) plant in Aceh, operated by ExxonMobil Indonesia (EMOI), the subsidiary of American energy giant ExxonMobil Corp., targets to ship 38 cargoes and 26 cargoes in 2011 and 2012, respectively, an EMOI senior officer said.

Vice president Maman Budiman said on Wednesday that for this year, Arun targeted to ship 39 cargoes of LNG.

Arun's LNG output is now on declining trend due to declining reserves of gas at blocks operated by EMOI. Its supply contract to East Asian buyers expires within the next few years.

Maman said on May 19, this year that currently EMOI produces 300-400MMCFD at its Aceh gas blocks and the output will gradually dwindle to some 60 MMCFD in 2015 towards the expiration date of the blocks? contracts in 2018.

According to Maman, Arun could still now operate one train with gas feed of around 300 MMCFD.

Maman said EMOI is in talks to supply its remaining gas production after 2015 towards the end of its PSC contracts to Aceh fertilizer maker PT Pupuk Iskandar Muda (PIM). ?After Kogas contract end, EMOI will have capacity to supply 60 MMCFD to PIM,? he said.

Maman said that thus far, EMOI did not have plan to extend its PSC contracts in Aceh.

Upstream oil, gas regulator BPMIGAS? deputy chairman Budi Indianto said in February that BPMIGAS is currently studying the possibility to turn a loading terminal at Arun compplex into an LNG receiving terminal to meet gas requirement of PIM. (bernard)