KATADATA ? Authorities say Bontang LNG Plant may not be able to maintain its current level of production until the end of the year. It?s because the plant?s storage capacity is almost full and it is unable to accommodate all gas supply from the PSC Contractors.
On other hand, it?s harder to sell its products in the domestic and foreign markets. The PSC Contractors are expected to reduce its output in order to overcome this.
Deputy Chairman for Commercial Management of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Widhyawan Prawiraatmadja denied reports that the Bontang Plant?s capacity is full. However, he said, if PT Pertamina (Persero) is unable to find a buyer in the near future, the plant will use up all of its storage capacity.
The plant can accommodate 4-5 LNG cargoes. However, gas output from Mahakam Block is higher than expected early in 2014. At the same time, the sale of its products remains static.
According to Widhyawan, it?s very difficult to sell natural gas in the domestic market due to the lack of infrastructure to distribute the gas.
?PGN (PT Perusahaan Gas Negara Tbk), that was supposed to buy five cargoes from Bontang, is only able to purchase one cargo,? said Widhyawan to Katadata, on Monday (9/22).
The only viable solution for the problem is to sell the gas abroad on the spot market. The problem is that many people are opposed to this plan as many areas in Indonesia are still lacking of gas supply.
Widhyawan said that if the plant?s storage capacity is full and the plant is unable to find a buyer for its products, a production cut can be a viable option. SKK Migas will ask PSC Contractors to reduce its output.
?There?s no other way but to cut (the production),? he said.
Dapatkan pengalaman membaca lebih nyaman dan nikmati fitur menarik lainnya lewat aplikasi mobile Katadata.
