Indonesia selling 79 LNG cargoes

Indonesia’s industrial customers have been unable to consume the liquefied natural gas produced at Tangguh and Bontang LNG plants creating a surplus of cargoes that are being placed on offer. 

SKK Migas’ spokesman Zudaldi Rafdi told Platts, that 79 cargoes to be loaded in 2015 and 2016 are being offered from Indonesia’s LNG plants. Both facilities can not cut on production as it would cause issues in the long-term production and customers for which the LNG is allocated are failing to consume the volumes due to economy-driven slump in consumption.

Rafdi said the cargoes will be offered on the spot market or existing buyers.

According to him, Tangguh LNG plant will have 23 excess cargoes, six in 2015 and 17 in 2016, while the Bontang LNG plant will produce 56 excess cargoes in the same two-year period. The plant is set to put out 13 excess cargoes in 2015 and 43 cargoes of liquefied natural gas in 2016.

LNG World News Staff; Image: Badak LNG