PT Badak NGL production declines by 5 cargoes a year

The decline in the natural gas supply has caused a significant decline in the production of the Bontang, East Kalimantan liquefied natural gas (LNG) producer PT Badak NGL. This year, the decline in the LNG output is likely to reach by five cargoes.

Nurtjahjono, the manager of the company?s manufacturing division, said on Thursday that the decline in the production by five cargoes meant that the company could not grasp the business opportunity worth US$75 million a year. The estimated value is based on the assumption that the price of LNG is about US$15 million a cargo.

PT Badak?s annual LNG production has declined by five cargoes to 361 cargoes since early 2002 due the drop in the gas supply from nearby gas fields. "It is ironic that this happens when the price of LNG is still quite good," he said.

The price of LNG has risen to US$15 million per cargo (about 125,000 meter cubic) at present from about US$12 million last year. (*)