Indonesia: LNG projects face uncommitted cargoes

Indonesian Tangguh and Bontang liquefied natural gas projects are facing oversupply for 2017 and 2018, as well as possible production cuts. 

Wiratmaja Puja, Indonesia’s director general of oil and gas, said that there are 63 cargoes for delivery in 2017 are currently uncommitted, Reuters reports.

He added that the projects are looking to sell the cargoes to committed buyers, saying that negotiations are currently ongoing for 13 cargoes.

Puja said it would be “real pity” if the projects had to cut production.

The two projects still have more than 60 cargoes uncommitted in 2018, with Puja saying, Indonesia’s two projects are still oversupplied.

Earlier this year, the final investment decision to build a third train at the Tangguh LNG project has been reached by the project participants.

BP, the operator of the Tangguh LNG project said the third liquefaction train will add 3.8 million tons per annum of production capacity to the existing facility, bringing total plant capacity to 11.4 mtpa, with first production expected in 2020.

LNG World News Staff