2018, LNG Sales Transaction Value in NGL Rhino Refinery Reached Rp32.5 trillion

INDUSTRY.co.id - Jakarta - Special Unit for Upstream Oil and Gas Upstream Activities as of January 1, 2018 will have controls on operations and costs at the Badak natural gas (LNG) refinery in Bontang, East Kalimantan.

The transfer of control from Pertamina Joint Management Group (JMG) to SKK Migas entered a new phase with the agreement on the terms of the parties. The agreement was signed by Head of SKK Migas, Amien Sunaryadi with related parties, witnessed by President Director of State Asset Management Agency, Ministry of Finance, Rahayu Puspasari at SKK Migas office, Jakarta, Friday (22/12/2017).

The parties that signed the agreement were, among others, contractors in the working area (WK) Tengah, Sanga-Sanga, East Kalimantan, Makassar, Rapak, Muara Bakau, and Mahakam, and PT. Rhino Natural Gas Liquefaction (NGL).

"This is a new era of SKK Migas's role in gas processing management at the Badak refinery," Amien said in remarks.

According to him, the transfer of control role is in accordance with the recommendation of the Supreme Audit Agency (BPK). The goal is for optimization and efficiency.

He revealed, for the year 2018, LNG production from Badak NGL reach 50 percent of the national production. "Next year, the value of LNG sales transactions processed at the NGL Badak refinery is estimated at Rp32.5 trillion," said Amien.

SKK Migas, he said, expects good commitment and cooperation from all gas producers and PT. Badak NGL and sellers of designated LNGs to ensure the viability of the LNG business in accordance with this agreement. "The goal is that the target of production and state revenue according to the state budget can be achieved," he said.