Can End-of the-Year LNG Production Hit 205 Cargoes?

The liquefied natural gas (LNG) production from the Bontang Refinery in East Kalimantan and the Tangguh Refinery in West Papua as of September 2020 has reached 155.5 cargoes in total. The Bontang Refinery supplied 63.4 cargoes, while the Tangguh Refinery increased to 92.1 cargoes. The task force’s deputy for monetization and finance, Arif Setiawan Handoko, revealed that by the end of the year, Bontang and Tangguh Refineries would expectedly produce up to 84.6 and 121.1 cargoes, respectively. "By taking into account the remaining contracts, the projection for 2020 will reach 205.7 cargoes," he said.

The oversupply also affects LNG consumption this year. The low price means that buyers can freely choose LNG due to the abundant supply. Besides, PT Perusahaan Listrik Negara (PLN) still have not used about 14 LNG cargoes provided by BP Berau Ltd, the operator of the Tangguh Refinery, due to the dispute between both of them. The state-owned electricity company insisted that they did not have to use the gas now since BP Berau had not finished building the Tangguh Train 3. Meanwhile, BP Berau believed that PLN did not have to wait for the project completion to use the 14 LNG cargoes. "We are trying to sell the 14 cargoes," Arif said.