Uncontracted Bontang LNG cargoes to increase sharply next year
Thursday, July 6 2017 - 06:00 PM WIB
Petromindo|Khalsa
Volume of uncontracted LNG cargoes from Badak NGL or Bontang LNG, East Kalimantan will increase significantly next year as two long-term contracts will expire end of this year this year and will not be extended.
A petromindo.com source said that the two contracts are with Taiwan?s CPC and South Korea?s Kogas with combined volume of 2.8 million tonnes annually. Gas supply for the contract is sourced from Total-operated Mahakam block.
The source said that the Ministry of Energy and Mineral Resources has issued decree that prohibited extension of export LNG contract from Mahakam to fulfill gas requirement for state electricity firm PT PLN (Persero).
This year uncontracted volume from Bontang sold as spot cargoes may reach up to 20 cargoes and the number may be more than doubled next year, the source said.
Editing by Alexander Ginting