LNG exports to Korea faces uncertainty

BPMIGAS, the government?s agency responsible for oil and gas exploration and production, has confirmed that the Arun LNG producer in Aceh had difficulties to meet its export commitment to several foreign buyers particularly South Korea due to a decline in the gas reserves in its gas fields, Koran Tempo reported on Saturday.

The head of BPMIGAS, Rachmat Soedibjo, said that the government initially planned to assign the Bontang, East Kalimantan-based Badak LNG plant to fulfill the export order from Korea.

?But the Badak LNG plant also has problem with its gas supply. The LNG production could not also be increased,? he said.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro has said that the decline in the gas supply to the LNG Arun plant from the only gas supplier ExxonMobil got worsening because the latter still relied on its old fields in its gas production.

The minister said that ExxonMobil was still unable to carry our fresh exploration activities due to the continuing conflicts between the military and the GAM separatist movement. (*)