"One of Tangguh's trains [train 1] is running normally with production at about 22,000 cubic meters a day, while the other train [train 2] is still unable to run normally due to maintenance," said R. Priyono, the chairman of Indonesia's upstream regulator BPMigas.
BPMigas' operation deputy chief Budi Indianto said train 2 is running at 80% of capacity currently and could reach 100% by November. "[The lower run rate at train 2] may mean BP's shipment target for this year may not be achieved," he added.
The 3.7 million mt/year train 1 began commercial operations in July last year. It was shut soon after on August 6 due to technical problems at the descrub column, dehydration unit dryers and mercury removal drum, and was restarted in October. Train 1 is currently operating at 100% of capacity.
The commissioning of the 3.7 million mt/year train 2 was delayed last year in anticipation of similar problems, and commercial operations at the unit finally began in October.
In January this year, both trains were running at 80% of capacity as they were still new, BP spokesman Ngurah Kresnawan said that month.
BP over January-April 2010 had delivered a total of 24 LNG cargoes, out of the 101 cargoes contracted for this year, BP Indonesia Head of Country Nico Kanter had said in May.
The company's total shipments for the first half of the year were not disclosed, but an official who declined to be named said BP ships about nine cargoes each month.
BPMigas had previously said that the Tangguh LNG project would likely supply a total of 116 cargoes in 2010 to meet contractual commitment to its buyers, comprising China's CNOOC with 28 cargoes, South Korean K-Power and Posco with 24 cargoes, US' Sempra with 55 cargoes and Japanese buyers including power company Tohoku Electric Power with nine cargoes.
For full year 2009, shipments were affected by the unexpected shutdown of both trains.
Tangguh has five long-term supply contracts. They are with China's CNOOC for 2.6 million mt/year for 25 years; Posco for 550,000 mt/year for 20 years; K-Power for 600,000 mt/year for 20 years; and Sempra for 3.7 million mt/year for 20 years. Tohoku Electric Power is expected to receive 125,000 mt/year under a 15-year agreement, starting 2010.
The Tangguh project's two liquefaction trains are at Bintuni Bay on Indonesia's far eastern Papua province. It is based on 14.4 Tcf of proven gas reserves across three neighboring production sharing contracts.
BP has a 37.16% interest in Tangguh. The other partners are CNOOC (13.90%), MI Berau BV (16.30%), Nippon Oil Exploration (12.23%), KG Companies (10%), LNG Japan (7.35%) and Talisman (3.06%).
China Chemical Weekly: http://news.chemnet.com/en/detail-1403616.html
