MCGC asks to extend LNG contract with Bontang

By Febry Silaban

Japanese firm City Gas Company (MCGC) has asked to extend its existing contract with the Badak LNG plant in Bontang, East Kalimantan, which expires in 2015, according to upstream authority SKK Migas.

"MCGC has requested a contract extension. We are discussing it, and there isn?t yet any deal,? Gas Commercialization Division Head of SKK Migas Arief Riyanto told Petromindo.com.

Meanwhile, VP for LNG, Gas & Power at Gas Directorate of Pertamina Didik Sasongko Widi confirmed that the extension of MCGC?s contract is still under serious consideration.

Under the existing contract, MCGC has to absorb 0.4 million ton per annum of LNG from Bontang plant. But the firm will not take all the contract volume. As much as 0.125 millon tons, equal to two cargoes of LNG, will be carried over to 2016, Didik said.

Editing by Johannes Simbolon