Potential loss due to decline in gas exports reach more than Rp 1.3 trillion

The potential loss in state revenues resulting from the decline in gas exports this year is expected to reach about Rp 1.35 trillion, Pertamina?s president director Baihaki Hakim said as reported by Koran Tempo daily on Monday.

Baihaki said that the problem in the production of natural gas at TotalFinaElf?s Peciko field would significantly reduce Indonesia?s liquefied natural gas (LNG) exports. He did not mention the actual loss in the gas production but said that due to the problem in the Peciko field, Indonesia could not meet all the extra orders made by LNG buyers.

"Last year we received extra orders of 24 cargoes, while at present the extra order is only eight cargoes. It means we lost the opportunity to sell about 20 cargoes this year," he said, adding that with the current price level, the total receipts from the sales of 20 cargoes of LNG could reach about US$150 million or equivalent to Rp 1.35 trillion.

TotalFinaElf?s Peciko field in East Kalimantan supplies nearly 60 percent of the Bontang LNG plant?s gas needs.

Baihaki said that Pertamina would speed up the repair the gas production equipment in the gas field to ensure that the gas supplies for the Bontang LNG plant would be normal again. (*)