(MENAFNEditorial)
JAKARTA January 30 2015 - Liquefied Natural gas (LNG) production in 2015 which has not been sold (uncommitted) reached 23.5 cargoes making this year's gas lifting target of 1177 million barrels of oil equivalent per day might not achieved.
Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) said about 23.5 uncommitted cargos was caused by a number of gas sales purchase contracts have expired.
SKK Migas Chairman Amien Sunaryadi said the cargo excess occurred due to the expiration of LNG Badak IV contracts in 2013 as many as 40 cargoes and the expiration of LNG Korea II contract in October 2014 as many as 20.4 cargoes.
"As a result there were 23.5 cargoes which do not have a contract for 2015" he said during a meeting with Commission VII of the House of Representatives on Thursday (1/29/2015).
According to him the excess does not just happen this year. In 2014 the national gas production also had an excess of 15 cargoes.
Amien explained PT Pertamina who was designated as the seller has offered the 23.5 excess cargoes to the buyer. However the agreement has not been reached because the government wanted the price of US$10 per mmbtu while the buyer asked for US$8 per mmbtu.
If Pertamina still has not found the buyers he said it will impact on the national gas production decline.
For example the allocation of gas for transportation throughout 2014 was allocated 46 MMscfd but only absorbed 6 MMscfd. Similarly the allocation for domestic gas network is only absorbed by 3 MMscfd from the allocation of 7.3 MMscfd.
In addition a large gas consumers like PT Perusahaan Listrik Negara and PT Perusahaan Gas Negara (PGN) do not entirely absorb the production either.
SKK Migas allocates a LNG cargo to the receiving facility and the floating regasification or West Java FSRU but not absorbed because the FSRU is not ready. The same thing happens to the cargo flown to PLN. READ MORE
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