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Badak extends operating agreement for Bontang LNG plant
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A gas refinery operated by PT Badak Natural Gas Liquefaction (NGL) in Bontang, East Kalimantan. (Antara/Puspa Perwitasari)
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T Badak NGL renewed its agreement with the State Asset Management Agency (LMAN) on Thursday, paving the way for the former to maintain its status as the sole operator of Indonesia’s oldest liquefied natural gas (LNG) plant in Bontang, East Kalimantan.
The agreement will expire at the end of 2017.
At present, state-owned energy giant Pertamina holds the majority stake of 55 percent in Badak NGL. Total E&P Indonesie (TEPI) holds another 10 percent, while Vico Indonesia and Japan-Indonesia LNG Company (Jilco) control 20 and 15 percent, respectively.
TEPI and Vico have been granted the shares as they operate the Mahakam and Sanga-sanga blocks respectively in East Kalimantan, which supplies the natural gas processed into LNG at the Bontang plant.
“The ownership composition of the Badak NGL will change because TEPI’s contract at the Mahakam block will expire on Dec. 31,” Amien Sunaryadi, head of the Upstream Oil and Gas Regulatory Special Task Force (SKKMigas), said on Thursday.
“TEPI’s shares will be granted to [Pertamina’s affiliate] Pertamina Hulu Mahakam, which will operate the block next year.”
Amien said Italian energy firm Eni SpA would also have shares in Badak NGL as the company operated the Jangkrik complex in Makassar Strait, which had supplied gas to the Bontang plant since May.
With an additional gas supply of 600 million standard cubic feet per day (mmscfd) from the Jangkrik complex, the Bontang LNG plant is expected to produce 156 LNG cargoes in 2018, up from 140 cargoes this year. (bbn)
