Indonesia’s PLN cancels two Tangguh LNG cargoes

Indonesia’s state power company PT Perusahaan Listrik Negara has reportedly cancelled two shipments of liquefied natural gas from the BP-operated Tangguh plant.

The cargoes of around 213 billion British thermal units per day were for May delivery, Reuters reported on Tuesday citing Arief Setiawan Handoko, a deputy at oil and gas regulator SKK Migas as saying.

PLN reported last week that power demand in Indonesia has decreased due to the Covid-19 coronavirus pandemic and that the utility expects this trend to continue.

Handoko said the cancelled Tangguh cargoes were being offered in a tender by BP, according to the Reuters report.

Worth mentioning here, South Korea’s Daewoo Engineering & Construction has recently won a $50 million contract to carry out piping works at the Tangguh LNG export facility.

The contract is a part of the Tangguh expansion project which includes the addition of a third liquefaction train with a capacity of 3.8 million tons per annum.

The project will boost the total plant capacity located in Papua Barat Province to 11.4 million tons per year.

BP originally expected to launch the expansion project in the third quarter of this year but the project was delayed for about a year to the third quarter of 2021.

Recent media reports suggest that the Tangguh expansion project could even see further delays due to the situation with the ongoing coronavirus pandemic.

BP is the operator of the Tangguh facility with a 37.16% share.