Lower Output to Pull Down Indonesia LNG Exports

Rising domestic demand amid declining output may lead to a decline in exports of Indonesia's liquefied natural gas in 2012.

Country’s LNG exports in 2012 may fall below the 2011 exports of 362 cargoes.

LNG shipments are based on cargoes and one cargo is equivalent to between 125,000 and 175,000 tons.

Japan and South Korea are two main export destination of Indonesian LNG. Around half of country’s LNG is consumed domestically.

Production might decline by 28 percent to 262 cargoes next year due to falling output from France’s Total E&P Indonesie, which operates the Mahakam block in East Kalimantan.

Total Indonesie is the biggest supplier of gas to the processing plant in Bontang, East Kalimantan. Last year, it supplied 2,600 million cubic feet per day (mmscfd) of gas, which is equivalent to 30 percent of Indonesia’s total gas production.

Indonesia has two other LNG plants: Arun in Aceh and Tangguh in Papua.