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Indonesia diverts LNG gas to fertiliser sector

A report in Dow Jones suggests Indonesia, due to dwindling natural gas output, will reduce its LN...

Indonesia diverts LNG gas to fertiliser sector

The news comes on the back of Indonesia having to import six LNG cargoes from the Middle East for the first time ever in order to meet its commitments.

In an interview with the news provider, BP Migas chairman Rachmat Sudibyo said, “Deliveries from the Arun LNG facility are expected to be cut by 9 to 15 cargoes from the usual 76, while those from the Bontang plants will be cut by 30 to 35 from 360.”

“The government last week sent a team to meet with LNG buyers in Taiwan, South Korea, and Japan, [and] there are several options that we are considering, including delaying shipments to 2006, or buying LNG cargos from other suppliers,” he added.

Indonesia’s falling gas output comes from production problems from its East Kalimantan gas fields and after many years of exploitation at its Aceh gas fields.

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