Indonesia Cuts Gas Offtake Target

Indonesian government has reduced the gas offtake target for the 2017 budget as securing buyers is getting increasingly difficult, Katadata reported on Wednesday.

At a meeting held recently, the government through the ministry of energy proposed setting the gas lifting target at 1,050 - 1,150 million barrel of oil equivalent per day (boepd) in the draft 2017 state budget, a figure lower than the 1,150 boepd proposed in the revised 2016 budget, the media output stated.

Energy ministry has predicted that not all LNG will be sold this year. There are 10.4 gas cargoes from the Bontang refinery that will remain unsold, Katadata added. According to the ministry, out pf 152 LNG cargoes that Bontang will produce this year, 90.60 cargoes have been contracted for export while 17 cargoes are meant for domestic market.

Of the remaining cargoes, 14.5 will be sold to domestic market, 20 will be exported and 10.4 have yet to find a buyer.