Indonesia’s PLN cancels two Tangguh LNG cargoes

Indonesia’s state power company PT Perusahaan Listrik Negara has reportedly cancelled two shipments of LNG 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.

The news agency cited Arief Setiawan Handoko, a deputy at oil and gas regulator SKK Migas as saying this.

Handoko said BP has offered the cancelled cargoes in a new tender.

PLN reported last week that power demand in Indonesia has decreased due to the Covid-19 pandemic.

The utility said then that it expects this trend to continue even further.

Tangguh expansion

South Korea’s Daewoo E&C has recently won a $50 million contract to carry out piping works at the Tangguh plant.

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 mtpa.

The project will boost the total plant capacity located in Papua Barat Province to 11.4 mtpa.

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.

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