Badak NGL says LNG supply commitment remains safe

By Godang Sitompul

PT Badak NGL, operator of the Bontang LNG plant in East Kalimantan, said that its LNG supply commitment to traditional buyers remains safe despite lower gas supply from key source Mahakam block.

This was said by Salis Aprilian, Badak NGL President Director on Tuesday. ?Buyers (of LNG) have known (about the lower gas supply to the plant). There?s additional supply (of gas) from Chevron Bangka, so commitment (of LNG supply) to buyers won?t change much,? he told Petromindo.com. ?God Willing, commitment to the traditional LNG buyers is safe.?

Upstream oil and gas authority SKK Migas also confirmed that the LNG supply contract with the buyers is safe. ?There?s a decline of gas supply to Bontang, but does not affect LNG contract with existing buyers,? said Head of LNG Marketing Division at SKK Migas, Rayendra Sidik to Petromindo.com.

As previously reported by this portal, Salis said on May 8 that gas supply to the Bontang LNG plant has declined to around 1,300 mmscfd during the past two months, compared to this year?s target of 1,500-1,600 mmscfd. ?Because gas supply to the Bontang LNG plant was only around 1,300 mmscfd, then we?re considering to suspend on train,? he said.

Bontang currently runs four LNG trains. About 82 percent of the gas supply for the Bontang LNG plant comes from Mahakam block operated by Total E&P Indonesie. Two other suppliers are Chevron and VICO.

Salis said in February that the Bontang plant was targeted to produce 164 standard cargoes of LNG and 220 m3 of LPG this year.

Editing by Reiner Simanjuntak