SKK Migas: 20 LNG cargoes still uncommitted

Petromindo|Khalsa

Upstream oil and gas authority SKK Migas said that 20 LNG cargoes initially allocated for the domestic market are still uncommitted, Bisnis Indonesia reported on Tuesday.

The paper quoted Parulian Sihotang, Deputy for Financial Control and Monetization at SKK Migas, as saying that LNG cargoes which could not be absorbed by the domestic market will be exported to avoid closure of wells and to provide revenue for the state.

He said that the SKK Migas is still monitoring the LNG consumption of PLN and industries, which absorb about 90 percent of the LNG production allocated for the domestic market.

In February of this year, SKK Migas said that 32 LNG cargoes were still uncommitted, of which 28 were from the Bontang LNG plant in East Kalimantan, and another 4 from the Tangguh LNG plant in West Papua.

The country?s LNG production this year is targeted to reach 278 cargoes, up from 270 cargoes last year, which were entirely destined for export. This year there will be additional output from Jangkrik field.

SKK Miga said of the 278 cargoes, 202 cargoes have already been committed to buyers including 152 cargoes under long term export contract, and the remaining was allocated for the domestic market. (*)