Badak LNG plant to increase production in 2018

The Badak LNG plant in Bontang, East Kalimantan Province, is projected to increase LNG production in 2018 to 156 cargoes from realized output of around 140 cargoes in 2017.

Upstream oil and gas authority SKK Migas Amien Sunaryadi said on Thursday that there will be additional gas output to be processed into LNG next year from Jangkrik field in Muara Bakau block, operated by Eni.

He said that gas output at the Jangkrik field has reached around 600 mmscfd. Aside from Muara Bakau, the Badak LNG plant also obtains gas from Mahakam block (currently operated by Total, but will be taken over by Pertamina starting 2018), Sanga-Sanga block (Vico), East Kalimantan and Attaka blocks (Chevron), and Bangka field (Chevron) with total supply of 1,500 mmscfd.

?The LNG production in Bontang next year will reach 156 cargoes. This year, production is around 140 cargoes. The production will increase particularly because of additional gas from Eni,? Amien said, on the sidelines of a signing ceremony between the State Asset Management Agency (LMAN) and PT Badak NGL on Thursday.

Starting January 1, 2018, the Badak LNG plant will continue to be operated by PT Badak NGL as stipulated by Minister of Finance Decree No S303/MK.6/2017 dated November 27, 2017. But the plant will be operated under a new scheme in which LMAN, an agency under the Ministry of Finance becomes the owner of the Badak LNG plants assets. LMAN then appointed Badak NGL as operator of the plant. The two signed the agreement on Thursday.

PT Badak NGL operates the entire LNG plant and its infrastructure facilities including eight trains, six LNG storage tanks, five LPG storage facilities, and three loading docks worth Rp 16 trillion.

Amien said that the Badak LNG plant has a crucial role particularly in processing gas into LNG from fields located in East Kalimantan and Makassar Strait.

Editing by Reiner Simanjuntak