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LNG Badak production seen to fall 14% in 2019

JAKARTA ( – The liquefied natural gas (LNG) production of Badak LNG plant, Indonesia’s first LNG plant, is expected to fall by 14% next year from 2018 to 133 cargoes due to natural declining reasons.

In 2018, the LNG production of Badak LNG is projected to have reached 156 cargoes, according to the Special Task Force for Upstream Oil and Gas (SKK Migas).

“The planned production of Badak LNG in Bontang is projected to reach 133 cargoes,” Director for Corporate Marketing of Pertamina Basuki Trikora Putra was quoted by Bisnis Indonesia as saying Friday (Dec. 28).

The lower production was mainly due to expected lower supply of gas from gas blocks such as Muara Bakau and Sanga-Sanga Block.

The gas lifting of Muara Bakau is projected to reach 645 (million standard cubic feet per day/MMscfd) in 2019 compared to 667 MMscfd in 2018. Meanwhile, gas lifting of the Sanga-Sanga Block is projected to reach 69 MMscfd compared to 61 MMscfd in 2018.
The gas lifting of Mahakam Block which is now operated by Pertamina is projected to reach only 1,100 MMscfd in 2019 compared to 849 MMscfd in 2018, lower than the set target.

SEVP Gas & LNG Management Pertamina Tanudji Darmasakti said the LNG production from Bontang is sold to buyers in Japan (Western Buyers), PT Nusantara Regas and PT PLN (Persero). The LNG sale contracts to Japan are scheduled to expire in 2020. The supply contract extension is being negotiated. (*)

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