Bontang LNG to cut down production

LNG producer PT. Badak NGL in Bontang, East Kalimantan will cut down its liquefied natural gas (LNG) production due to the decline in orders from the company?s foreign buyers.

R. Priyono, the head of BPMIGAS, the regulatory body for upstream oil and gas operations, said last week that orders for Indonesian LNG from traditional buyers (Japan, South Korea and Taiwan) for this year had dropped by 16 cargoes, including 14 for LNG from Bontang and 2 for LNG from Arun in Aceh.

"We are still calculating how much the Bontang output will be cut. What is important is that the production cut should not disturb gas production from production wells. If a well is closed down, it will take one year to bring it back into normal production", said Priyono in Blora, Central Java.

Meanwhile, Badak NGL?s President Director Agus Haryanto confirmed that BPMIGAS had asked to cut down LNG production due the decline in export orders.

Agus said that the Bontang plant had received orders for 309 standard cargoes of LNG this year.

?We have yet to cut our production by 15 cargoes,? he said.

In March, Bontang LNG will restart producing liquefied petroleum gas (LPG) this year as its customers cancelled several LNG cargoes, Deputy Chairman in charge of Marketing Djoko Harsono told Petromindo.Com. (bernard)