Gas supply shortage forces Bontang LNG to swap December shipments

State oil and gas company Pertamina said Bontang LNG plant was forced to purchase four LNG cargoes from overseas for December delivery to meet contractual obligation to customers.

Pertamina downstream director Harry Purnomo that oversees Bontang LNG plant operations told reporters late Saturday that the purchase was made due to gas supply shortage from East Kalimantan gas producers.

Harry did not give detail about the volume of Bontang?s contractual obligation for December, but he said the cargoes were purchased from Nigeria and Qatar. He further added that the shortage would end early next year as the demand for LNG from customers is predicted to decrease.

Earlier, one of Bontang?s major buyers South Korean gas company Kogas said that Bontang had delayed for a week a term LNG cargo due for mid-December delivery due to production problems.

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. (alex)