BP asks for lower LNG shipment this year

Oil and gas giant BP will not be able to meet its commitment to deliver 56 cargos of LNG to foreign buyers this year due to production problems at the company?s Tangguh LNG plant in Papua, Kompas reported on Friday.

The company?s Head Country Manager Nico Kanter said in Jakarta on Thursday that the company had asked for the rescheduling of the LNG shipment due to problems Tangguh's two production units. This year, BP should deliver 56 cargos of LNG to its foreign buyers.

As of August this year, the company was only able to deliver nine cargos. Of the total, three were sourced from Tangguh and the remaining six were from the Bontang LNG plant (four cargos) and the Arun LNG plant (two cargos, which shipped the LNG under a swap agreement with Tangguh.

Kanter said that the first LNG production unit which began production in July halted its production in August due to a problem in its refinery facilities. The second production unit which undertook a trial operation in July had also delayed its commercial operation until September due to a similar problem.

Tangguh plant has long-term contracts to supply 1.15 million tons of LNG a year to K-Power and Posco, 2.6 million tons to China?s Fujian province and 3.7 million tons to Sempra. (*)