Pertamina plans to take over Badak NGL operation

State oil and gas company PT Pertamina has expressed its interest to fully take over the operation of East Kalimantan-based liquefied natural gas (LNG) producer PT Badak NGL in order to further strengthen the company?s downstream operation, Kompas reported on Monday.

Pertamina?s president director Karen Agustiawan said in Jakarta last week that the company needed the government?s support in order to be able to take over the operation of the LNG producer.

She said that if Pertamina is allowed to take over PT Badak, also known Bontang LNG producer, it would no longer need to build a LNG plant in widening the company?s downstream operations.

PT Badak, which was established in 1974 as the country?s second LNG producer after PT Arun LNG plant in Aceh, operates eight LNG trains with total processing capacity of 22.5 million tons of LNG a year.

PT Badak, which is 50 percent owned by Pertamina, 20 percent by Vico Indonesia , 15 percent by Japan Indonesia LNG Co (JILCO) and 10 percent by Total E&P Indonesie, operates as an independent company. It receives gas supply from several gas fields operated by Pertamina, Vico Indonesia, Total and Chevron Indonesia. (*)