Indonesia: up to 60 LNG cargoes to hit spot market in 2016

Indonesia’s two LNG plants could flood the spot market with up to 60 uncommitted liquefied natural gas cargoes in 2016. 

Head of SKK Migas’ communications department Elan Biantoro said that the Tangguh and Bontang LNG facilities could end up with 55-60 uncommitted cargoes due to expiring contracts, Platts reports.

Cargoes, with a typical volume of 125,000 cbm, could be offered on the spot market by Pertamina and BP, however, Biantoro said that the domestic needs will have the priority while unused capacities will be offered via tenders.

Bontang facility, operated by Badak LNG, is also set to reduce the number of cargoes it produces in 2016. According to Badak LNG’s president director, Salis Aprilian Bontang LNG plant will produce 147 cargoes instead of 170 planned for 2015 due to lower gas production.

LNG World News Staff