Indonesia to cut 2006 LNG export
Saturday, October 22 2005 - 02:19 AM WIB
BPMIGAS deputy chairman in charge of marketing Eddie Poerwanto told reporters on Friday that Bontang LNG plant will have to cut output by 30 cargoes this year from the contracted volume of around 370 cargoes.
?Buyers in South Korea, Japan and Taiwan had been notified about the adjustment and negotiation to determine fixed volume for each buyer would be completed November,? he said.
This year Bontang will also cut around 30 cargoes out of the 365 cargoes contracted.
Production from East Kalimantan gas producers Chevron East Kalimantan and Vico Indonesia are declining due to lack of new field development and declining output, while production addition from Total Indonesie could not balance the decline.
Gas supply shortage in East Kalimantan would linger until at least 2007, as no new gas addition would enter the system, a BPMIGAS official said. The official said that within the next few years, Total Indonesie can only be expected to maintain its prodfuction at 2.7 BCFD, while VICO Indonesia?s production which is currenly stood around 650MMCFD would steadily be declining due to reserves depletion. Chevron East Kalimantan, which is currently producing around 200MMCFD. ?Addition from Chevron?s Gendalo gas field may come in 2008 at a rate of 300 MMCFD,? said the official.
Eddie went on to say that Arun LNG plant in Aceh, which is supposed to deliver 75 cargoes next year may only be able to deliver 66 cargoes.
ExxonMobil official Maman Budiman when contacted by Petromindo.Com said that Exxon experienced problems in its reservoir and may not be able to deliver gas equivalent to 75 cargoes to Arun next year.
Even with the reduced volume, Indonesia might lack between five to eight shipments to meet remaining orders, said Eddy.
LNG production is on the decline in the country as reserves in the gas fields, which have been operating for decades, are now becoming depleted. (godang)