Indonesia’s rising output cuts need for LNG imports

Indonesia's rising output cuts need for LNG importsLNG carrier docked at Tangguh’s jetty (Image courtesy of BP)

Indonesia might not need to import liquefied natural gas (LNG) until 2020 as local production turns out to be better than expected. 

Speaking to the media, Wiratmaja Puja, Indonesia’s director general of oil and gas, said that the country’s production surpassed predictions meaning the country would not need to import LNG in 2019, Reuters reports.

The country’s production was boosted by the higher-than-expected volumes from the Eni-operated Jangkrik that started up in May.

Puja said that, although the project was planned to have a production of 450 million cubic feet per day of natural gas, it could reach up to 600 mcf per day.

He also said that with the expected start-up of Tangguh LNG plant’s third liquefaction train, and additional volumes to be supplied to the Indonesian market, the country might also not need to import the chilled fuel at the end of 2020.

Speaking of Pertamina’s deals with Cheniere, Woodside and ExxonMobil, starting in 2018, 2019 and 2025 respectively, Puja said that these cargoes would be redirected to other markets in Asia, as the country is looking to make the state-owned company a global player.

The company’s vice president for LNG Didik Sasongko, told Reuters the deal with Cheniere could be used to optimize the company’s portfolio, while the deal with Woodside has flexible delivery terms.

In addition, Puja said the country still has some 18 uncommitted cargoes for the current year, while it could average 50 to 60 uncommitted cargoes per year until 2035.


LNG World News Staff

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