Badak NGL cancels planned train shutdown

By Bernard Loebs

PT Badak NGL, the operator of the Bontang LNG plant in East Kalimantan, has decided to cancel an earlier plan to shut down one train this month.

Badak NGL President Director Salis Aprilian said to Petromindo.com on Wednesday that the decline in the gas supply from Total EP Indonesie (TEPI) was not as large as the company initially anticipated.

As such, he said, Bontang LNG plant will continue to run with four trains.

Salis added that gas supply from Chevron IDD project started on Wednesday. ?I don?t know the volume yet,? he said.

Badak NGL receives gas supply primarily from the Mahakam block, in East Kalimantan, operated by Total E&P Indonesia, in addition to supplies from Sanga-Sanga block, operated by Vico, and Chevron?s IDD project (Makassar Strait).

Each train has a capacity of 400-500 mmscfd, which makes total capacity of four trains at 1,800 mmscfd.

Badak NGL announced in March plans to shut down one train in July of this year amid declining gas supply, and another in 2019 if the problem persists.

Badak NGL has been concerned with declining gas supply particularly from the Sanga-Sanga and Mahakam blocks in the wake of the recent drop in oil price, and as TEPI?s contract over the Mahakam block is set to expire by the end of 2017.

Editing by Reiner Simanjuntak