(14 April 2009, Pipeline Asia)A gas swap arrangement in Indonesia has been made for delivery of gas from Badak NGL’s Bontang LNG/LPG facility to a Chinese customer of BP’s Tangguh LNG plant, the start-up of which has been delayed due to technical difficulties.
The agreement is a temporary arrangement until the two-train Tangguh LNG plant commences operations, which had been scheduled for April. Last month, however, BPMigas Chairman Raden Priyono said that a broken valve train resulting in excess levels of water at the Tangguh site had most likely set the project back to June.
The Tangguh project, located on the Bituni Bay area of Papua Barat, has proven gas reserves of 14.4 Tcf and has contracts to supply 3.5 MMt/a of LNG to Sempra Energy in the USA, as well as 2.6 MMt/a to a China National Offshore Oil Corporation terminal in the Fujian province. The first LNG cargoes will now be delivered to the Fujian terminal from the Bontang field.
President Director of Badak NGL shareholder Total E&P, Elisabeth Proust, said “We are in the process of arranging two cargoes of Bontang gas for delivery to Fujian with the Tangguh operator. The first cargo will be delivered in May and the second in June.”
Due to several recently cancelled contracts in East Asia, the Bontang project now has an excess capacity of 18 cargoes. Nine of the cargoes have been allocated to supply Pupuk Iskandar Muda’s fertiliser operations in Aceh, and six more will be processed for Pertamina’s LPG projects.