LNG production at Bontang refinery down

LNG production at the Bontang refinery managed by PT Badak NGL declined during the first semester of this year to 100 cargoes compared to last year, Investor Daily reported on Friday.

Badak NGL President Director Nanang Untung said that the production drop was in line with a shrinking LNG supply contract commitment with overseas buyers.

He said that Bontang?s LNG supply contract with overseas buyers mostly will end in 2020, but some will end this year. ?It seems that contract with Japan will end this year,? Nanang said.

Meanwhile, Head of Upstream Authority BPMIGAS R. Priyono said that gas production from Chevron?s Indonesia Deepwater Development (IDD), and Eni?s Jangkrik Field in Muara Bakau will be shipped to Bontang to be processed into LNG for export destination.

Nanang confirmed that his company has been in talks with Chevron over the plan, but he has just only heard about the plan with Eni. With a production of 900 mmscfd, gas from IDD can be processed into 100 cargoes of LNG. (*)