Pertamina plans to convert Bontang LNG plant into regassification unit
Thursday, March 31 2016 - 01:56 AM WIB
State owned oil and gas firm PT Pertamina plans to convert the Bontang LNG plant in East Kalimantan into a regassification plant unit in the future, if there is no gas supply at all.
"We plan to convert the Bontang LNG plant into regas unit, if there is no supply of gas at all, same as the regas Arun in Aceh," Salis Aprilian, President Director of PT Badak NGL, the operator of the plant, said to Petromindo.com.
He projected that the plan is likely to materialize in 2034.
Salis said earlier that PT Badak NGL will shut down one train in June or July of this year due to declining gas supplies, and may close down another in 2019 if the problem continues.
Badak NGL, which currently operates only four trains, receives gas supply primarily from the Mahakam block, in East Kalimantan, operated by Total E&P Indonesia, in addition to supplies from Sanga-Sanga blok, operated by Vico, and Chevron?s IDD project (Makassar Strait).
As has been previously reported by this portal, gas supplies from Mahakam and Sanga-Sanga have declined as the operators cut down gas production in the wake of oil price drop and as their contracts are set to expire. Total?s contract over the Mahakam block will expire in late 2017, and the government has decided to transfer the block to Pertamina.
Editing by Reiner Simanjuntak