Indonesia reschedules LNG shipment

Leony Aurora, The Jakarta Post, Jakarta

Indonesia is to delay the shipment of 51 cargoes of liquefied natural gas to buyers in Japan, South Korea and Taiwan this year, says a top executive of the state oil and gas firm, PT Pertamina.

The company's trading and marketing director, Ari Soemarno, said that 42 cargoes were from the Bontang plant in East Kalimantan and the other nine from Arun in Aceh.

Ari said that the buyers were actually seeking fewer LNG shipments this year, which was timely as the country had also to reallocate some of its gas output to fertilizer producers, while the output capacity of certain fields had also been on the decline.

"Everything has been agreed upon in principal, and we just need to sign the agreements."

It was unclear when the customers, which include Kansai Electric Power Co., Chubu Electric Power Co., Tokyo Gas Co., and Korea Gas Corp., would receive the delayed orders.

Oil and Gas Implementing Body (BP Migas) chairman Rachmat Sudibyo said the problem in Bontang was primarily centered on one of the Attaka fields.

In February last year, a flash fire occurred on a Unocal offshore platform in the Attaka field. According to the company's website, it resumed operation in March 2004. But, Rachmat said, it might take another year before the field's production would return to normal.

Bontang has entered into commitments for the export of 335 cargoes this year -- already factoring in the rescheduled ones -- in addition to 45 cargoes from the Arun plant.