LNG cut: Pertamina headquarters in Jakarta
Pertamina sees lower LNG outputs
Indonesia’s state-owned Pertamina plans to lower its liquefied natural gas production on weaker LNG demand overseas and diversion of gas outputs to domestic users, according to the head of its LNG business.
Hari Karyuliarto told reporters at an LNG conference in Singapore output at the country’s first two projects in Arun and Bontang will reduce by 2 million tonnes to 18 million tonnes.
“Demand for LNG is lower and we are delivering some gas to local fertiliser plants,” Hari said.
The Bontang LNG, slated to supply Indonesia’s first LNG import facility in West Java, will see a larger cut, he said.
Pertamina and PT Perusahaan Gas Negara plan to spend $400 million to build two LNG import facilities in West Java and East Java and may complete construction by 2011, according to a Jakarta Globe report.
Indonesia’s LNG output has fallen from a peak of 29 million tonnes in 1999 to 19.6 million tonnes in 2008, the report said.
Domestic natural gas consumption has increased to 49.5% of the total natural gas outputs in 2008, from 29.6% in 2002, according to government figures.