GAS

Indonesia tackles LNG export shortfalls, uses gas to help rebuild Aceh

INDONESIA’S oil and gas regulator, BPMigas, says the shortfall in LNG export contracts from the PT Arun NGL gas liquefaction plant will be met by Indonesia’s other gas liquefaction plant, PT Badak NGL.

Indonesia tackles LNG export shortfalls, uses gas to help rebuild Aceh

The Arun plant in Aceh has seen its output declining in recent years due to supplier’s ExxonMobil’s depleting reserves at its gas fields. Badak is currently the world’s largest operating LNG plant.

Badak will deliver as many as nine cargoes to Arun’s buyers in Japan, South Korea and Taiwan next year, the head of BPMigas’ marketing department, Djoko Harsono, was quoted saying in a Xinhua News Agency report.

Meanwhile ExxonMobil Corp has agreed to sell natural gas to Indonesian fertiliser plants in Aceh province threatened with closure in a seen as essential for the rebuilding of the economy of the earthquake and tsunami-devastated area.

BPMigas said ExxonMobil had agreed to an Indonesian government request to boost supplies to the fertiliser plants. But the increase comes at the expense of a nearby LNG project partly owned by the US firm.

“Arun and Badak have this transfer commitment, so Arun can supply gas to fertiliser plants [in Aceh] without having to cut LNG exports to buyers,” Djoko said.

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