Pertamina plans lower LNG sales volume in 2014

State-owned oil and gas firm PT Pertamina has set a lower LNG sales volume target of 586 trillion British thermal unit (TBtu) from its two LNG plants this year, compared to last year?s prognosis of 619 TBtu, reports said on Wednesday.

Pertamina Director of Gas Hari Karyuliarto was quoted by Bisnis Indonesia daily as saying that the lower sales volume target was due to lower production from gas blocks feeding the LNG plants.

Pertamina currently operates two LNG plants including Arun LNG Plant and Bontang LNG Plant.

?Production from Arun Plant has continued to decline, that?s why the sales volume target for this year is lower. The declining gas supply to the plant has also become the reason to transform it into a regasification and storage terminal,? Hari said.

The Arun LNG Plant is targeted to produce 14 cargoes of LNG this year, lower than last year?s production of 19 cargoes. Meanwhile, the Bontang Plant is targeted to produce 158 cargoes in 2014, lower than last year?s 189 cargoes.

The lower LNG production also comes as a number of export contracts expired. The Arun Plant exports LNG to buyers in Japan, South Korea, Taiwan and the US. Meanwhile, Bontang Plant will see some export contracts to expire in 2017, although part of them have been extended to 2020. Aside from exporting LNG, part of Bontang?s production has been allocated for the West Java Floating Storage and Regasification Unit. (*)