Badak NGL to dismantle one LNG train

PT Badak NGL, which operates the Bontang LNG plant in East Kalimantan, plans to shut down and dismantle one of the plant?s eight LNG trains next year, Bisnis Indonesia reported on Wednesday.

The paper quoted Badak President Director Didik Sasongko as saying that the company has decided to close down and dismantle one LNG train as it has no longer utilized it amid declining gas supply, and in a bid to cut down cost particularly for maintenance of the facility. He added that the plan has been submitted to the government since last year.

Since 2016, Badak has been operating only four LNG trains, and one train as a back-up, while the other three are unutilized. The company will retain the two unutilized trains in case of increasing gas supply from nearby gas fields in the future.

Badak is 55 percent owned by state-owned oil and gas firm PT Pertamina, with the remainders held by Total E&P Indonesie (10%), Vico (20%), and Jilco (15%).

The Bontang plant, which last year produced 172 cargoes of LNG, receives gas supply from Mahakakm block operated by Total, East Kalimantan block operated by Chevron Indonesia, and Sanga-Sanga block operated by Vico.

The plant since 2016 has also receiving gas supply from Bangka Field in Chevron?s IDD project, and since mid of this year started receiving supply from Jangkrik field in Muara Bakau block operated by Eni. (*)