MCGC?s contract with Bontang to be extended

By Febry silaban

The existing contract between Japanese firm Medium City Gas Co. (MCGC) and the Bontang LNG plant in East Kalimantan, which expires in 2015, will be extended up to end 2016.

"MCGC?s contract with Bontang plant will be extended until 2016, but until now the approval from the government has not been obtained yet," an industry source told Petromindo.com.

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 0.3 million tons per annum, equal to two or four cargoes of LNG, will be carried over to 2016, according to the source.

Editing by Johannes Simbolon