Bontang says no S. Korean LNG supply delay
Tuesday, December 9 2003 - 05:48 PM WIB
"Up until now we have no plan to delay any supply. We are very sensitive about that. Production from Bontang will be according to the schedule and there's no problem so far," Tatang Kartiman, a Badak official, told Reuters by phone from the complex in Bontang.
"Bontang LNG currently produces below its capacity. We have room for other supply if there is any more demand. Currently Bontang supplies to Japan, South Korea and Taiwan. We will fulfill our commitments," he said.
A source at state-run Korea Gas Corp (KOGAS) said on Monday in Seoul that Indonesia has delayed for a week a term LNG cargo due for mid-December delivery to South Korea due to production problems.
KOGAS, the world's single-largest buyer of liquefied natural gas (LNG), had originally planned to take the 60,000-ton cargo from LNG plants in Bontang on December 15, a company source told Reuters, adding that it not been informed of any other delays in LNG cargoes.
KOGAS imports a total of two million tons of LNG every year from Bontang under long-term supply contracts with Indonesia's state-oil company Pertamina.
The Bontang LNG complex, operated by Badak with a majority share owned by state oil company Pertamina, has eight plants with capacity of around 22.5 million tonnes per year.
Irwandar, the spokesman for Indonesia's Arun LNG complex in Aceh province, said production from Arun complex would reach its target of 115 cargoes this year.
"We have no problem in output. We will reach shipment target of 115 cargoes this year," Irwandar said.
He said Arun has four LNG plants with capacity of around 10 million tonnes per year.
Badak's Kartiman said natural gas supply to feed the Bontang LNG plants from French oil group Total in East Kalimantan was normal and no problem.
Indonesia exports around 29 million tonnes of LNG a year.(*)