Jakarta, 07-29-09 (Antara News) - The government maximizes the decrease in liquified natural gas (LNG) export from Bontang Plant, East Kalimantan, and Arun Plant, Aceh because of a global crisis to meet domestic needs.
"Our priority is to fulfill domestic market," said Chief Executive of Upstream Oil and Gas Supervisory Agency (BP Migas) Mr. R. Priyono in Jakarta on Wednesday (07-29-09).
According to him, the domestic market is done by divert it to LPG and supply it to PT Pupuk Iskandar Muda (PIM) through the exchange scheme (swap) between Bontang and Arun. Some of the other LNG used as a commitment substitute of Tangguh Plant in Papua.
PT Pertamina (Persero) has ensured will absorb eight cargo or equivalent to 340,000 metric tons from 400,000 metric tons LPG Bontang production.
The first shipment of LPG Bontang cargo (eq. 44,000 metric tons) have been done on 26 July 2009.
The Expert Staff for Information and Communication Affairs of Ministry of Energy and Mineral Resources, Mr. Kardaya Warnika add, Indonesia can not simply divert the export contract of LNG Bontang and Arun in the country without the agreement with the buyer.
"Contract does not mention the divert option of the buyer to another," he said.
Until the end of the year 2009, a decrease in export volume of Bontang and Arun is estimated to reach 12 cargo (a cargo equivalent to 125,000 cubic meters) lower than initially predicted as many as 18 cargo. The plan of LNG export reduction that comes from Bontang (10 cargo) and Arun (2 cargo).
Due to the global crisis, the buyers of LNG Arun and Bontang usually called as the traditional buyer, which is Japan, South Korea, and Taiwan has reducing the purchase.
Indonesia and previous buyers agreed to lower the cargo 18 on this year, but eventually become a 12 cargo.
"Our priority is to fulfill domestic market," said Chief Executive of Upstream Oil and Gas Supervisory Agency (BP Migas) Mr. R. Priyono in Jakarta on Wednesday (07-29-09).
According to him, the domestic market is done by divert it to LPG and supply it to PT Pupuk Iskandar Muda (PIM) through the exchange scheme (swap) between Bontang and Arun. Some of the other LNG used as a commitment substitute of Tangguh Plant in Papua.
PT Pertamina (Persero) has ensured will absorb eight cargo or equivalent to 340,000 metric tons from 400,000 metric tons LPG Bontang production.
The first shipment of LPG Bontang cargo (eq. 44,000 metric tons) have been done on 26 July 2009.
The Expert Staff for Information and Communication Affairs of Ministry of Energy and Mineral Resources, Mr. Kardaya Warnika add, Indonesia can not simply divert the export contract of LNG Bontang and Arun in the country without the agreement with the buyer.
"Contract does not mention the divert option of the buyer to another," he said.
Until the end of the year 2009, a decrease in export volume of Bontang and Arun is estimated to reach 12 cargo (a cargo equivalent to 125,000 cubic meters) lower than initially predicted as many as 18 cargo. The plan of LNG export reduction that comes from Bontang (10 cargo) and Arun (2 cargo).
Due to the global crisis, the buyers of LNG Arun and Bontang usually called as the traditional buyer, which is Japan, South Korea, and Taiwan has reducing the purchase.
Indonesia and previous buyers agreed to lower the cargo 18 on this year, but eventually become a 12 cargo.
