Indonesia is expected to have as many as 55-60 of uncommitted LNG cargoes next year from the Tangguh and Bontang LNG plants, the head of upstream regulator SKK Migas' communications department, Elan Biantoro, said Monday.
The available cargoes are likely to be offered on the spot market, Biantoro said. One cargo is typically 125,000 cu m.
"Pertamina and BP will invite bids by tender on the spot market to get the best price. However, we will prioritize domestic needs, if they can't absorb it we will offer via tender," he said.
BP leads the Tangguh LNG consortium.
The cargoes have become available because contracts have expired, according to Biantoro.
Meanwhile Badak LNG, the operator of Bontang LNG plant, plans to produce 147 LNG cargoes in 2016, lower than this year's plan of 170 cargoes due to lower gas production, its president director Salis Aprilian said Monday.
Bontang estimates gas supply of 1.466 Bcf/d from gas producers next year compared with 1.696 Bcf/d in 2015, Aprilian said.
Bontang is supplied mostly from the Mahakam block in east Kalimantan, which is owned by Total and Inpex on a 50-50 basis.
The block's contract will expire in 2017, and the government has appointed state-owned Pertamina to take a majority stake in the block, but Total and Inpex will still be allowed to have stakes.
Indonesia has three LNG plants: Bontang in east Kalimantan, Tangguh in Papua and Donggi Senoro in central Sulawesi.
The country closed down its Arun LNG plant in Aceh due to a fall in gas production and the expiry of LNG export contracts.