Friday, July 10, 2020

Indonesia News

Indonesia Produced 104.8 LNG Cargoes in Jan-June Period

Image for illustration - Credit: Altin Osmanaj/AdobeStock

Indonesia produced 104.8 standard cargoes of liquefied natural gas (LNG) from its Bontang and Tangguh LNG plants in between January to June. Susana Kurniasih, upstream oil and gas regulator SKK Migas' spokeswoman told Reuters.79 cargoes of LNG were exported and 25.8 cargoes were sold domestically in first half of 2020. 20.5 cargoes of domestic sales were sold for electricity.

Malaysia to Sue EU Over Palm Biofuel Restrictions

Image Credit: helivideo/AdobeStock

Malaysia, the world's second-largest palm oil producer, will take legal action against the European Union's restrictions on palm oil-based biofuels with the World Trade Organization (WTO), calling the policy a "discriminatory action."Plantation Industries and Commodities Minister Mohd Khairuddin Aman Razali said on Wednesday the EU's renewable energy…

Indonesia Targets IPOs of Pertamina Sub-holdings

Illustration; A Pertamina offshore platform - Credit: Pertamina

Indonesia's State-Owned Enterprise Minister Erick Thohir said on Friday he aimed to group units of state oil and gas company PT Pertamina into "sub-holdings" and launch initial public offerings within two years.Thohir is trying to revamp hundreds of Indonesian state companies to boost profitability, as well as improve transparency and public trust.In the case of Pertamina…

Refineries around Asia Join Chinese Peers in Increasing Production

Refinery - Image by TTstudio/AdobeStock

Refineries from India to South Korea are expected to increase output from June, joining their Chinese counterparts as the easing of lockdown measures boosts demand for oil products, industry executives said.The average operating rate for refineries in Asia is expected to rise to 75.5% and 82.2% in the third and fourth quarters, respectively, from 72.4% in the second quarter out of total capacity of about 35 million barrels per day…

Pertamina to Develop Cilacap Refinery without Saudi Aramco

Illustration only - Image by photollurg/AdobeStock

Indonesia's PT Pertamina will develop its Cilacap refinery in Central Java "independently", the state energy company said on Friday, dropping a plan to boost capacity through a joint venture with Saudi Aramco.The two companies have been in talks to upgrade the Cilacap refinery since 2016 and last year said that they would finalize a joint venture plan…

Gastech Postponed for 2021

Image by Zerbor/AdobeStock

Gastech, one of the world's largest gas, LNG and energy industries events has been postponed for 2021 due to the COVID-19 pandemic.The event was expected to take place in Singapore in September this year, however, the organizers have now decided to delay the event to September 13 to 16, 2021.Organizers dmg events said the decision had been based on concerns around the global pandemic…

Siemens Equipment for Pertamina's Balikpapan Refinery

There are more than 3,000 HHE-class compressors in operation worldwide today.  - Image: Siemens

Siemens Gas and Power will supply a range of compression and power generation equipment for the Petramina's Balikpapan Refinery located on Borneo Island in East Kalimantan, Indonesia.The equipment will be installed as part of Pertamina’s Refinery Development Master Plan (RDMP). The RDMP involves the construction of a residual fluid catalytic cracker (RFCC) unit with a design capacity of 90…

Indonesia Weighing Subsidy Options for Biodiesel Program

Illustration by Corona Borealis - AdobeStock

The Indonesian government is considering alternate plans to increase subsidies for the country's ambitious biodiesel program after crude oil prices tumbled, a finance ministry official said on Wednesday.A historic crash in oil prices this year has widened the cost difference between standard diesel fuel and the fatty acid methyl ester (FAME), making biodiesel more expensive to be subsidized."At the moment…

Covid-19 Catches up with Seaborne Coal in Asia

Image by Yaniv - AdobeStock

The coronavirus pandemic has finally caught up with seaborne thermal coal in Asia, as soft demand in major importers India and China sends prices to multi-year lows and dents the polluting fuel's relative outperformance against other energy.The price of low-energy coal from Indonesia, the world's top exporter of thermal coal, has dropped to the lowest since assessments were started by commodity price reporting agency Argus in 2008…

OPEC, Russia Approve Biggest-Ever Oil Cut to Support Prices

OPEC and allies led by Russia agreed on Sunday to a record cut in output to prop up oil prices amid the coronavirus pandemic in an unprecedented deal with fellow oil nations, including the United States, that could curb global oil supply by 20%. Measures to slow the spread of the coronavirus have destroyed demand for fuel and driven down oil prices, straining budgets of oil producers and hammering the U.S.

Pertamina Buys NWS Condensate at 'Deep Discount'

Illustration by Kovalenko I - AdobeStock

Indonesia's state oil and gas company PT Pertamina has bought a cargo of Australian North West Shelf (NWS) condensate at a deep discount of $8 a barrel to dated Brent on a cost-and-freight (CFR) basis, three trade sources told Reuters on Wednesday. That was equivalent to a spot discount of $10 a barrel on a free-on-board (FOB) basis, the sources said, likely the widest spot discount in years.

Huisman Crane for Penta-Ocean's Wind Turbine Installation Rig

Image Credit: PaxOcean

Dutch offshore equipment manufacturer Huisman has signed a contract with PaxOcean Engineering for the delivery of a 1,600mt Leg Encircling Crane. The crane will be installed on the new self-elevated platform (SEP) of Japanese company Penta-Ocean Construction, which ordered the unit from PaxOcean earlier this year.With this Huisman crane, the new jack…

Taiwan Gets 1st Carbon Neutral LNG Shipment

Image: Shell

Taiwan accepted its first carbon neutral shipment of liquefied natural gas (LNG). State-owned CPC Corporation, a natural gas, and gasoline company in Taiwan announced receipt of LNG cargo from Shell.Nature-based carbon credits have been used to compensate the full carbon dioxide (CO2) emissions generated – from exploring for and producing the natural gas…

Australia Becomes World's Largest LNG Exporter

Graph: Rystad Energy

Australia has become the largest liquefied natural gas (LNG) exporter in the world. The record figure knocked Qatar out of the top spot."Australia is set to become the world’s largest liquefied natural gas (LNG) exporter this year, overtaking Qatar, with its supplies expected to reach 81 million tonnes (MT) as Ichthys LNG and Prelude FLNG increase production…

LNG Tanker Diverted from China in Sign of Weaker Demand

© nikkytok / Adobe Stock

A liquefied natural gas (LNG) tanker that had been heading to China has been diverted, data intelligence firm Kpler and two industry sources said on Tuesday, probably due to lower demand for the fuel as businesses are hit by the coronavirus outbreak.The Tangguh Foja tanker loaded a cargo at the Tangguh LNG plant in Indonesia last month and had been heading to China's Rudong terminal in Jiangsu province…

Indonesia Plans New Gas Pricing for Industrial Users

© anekoho / Adobe Stock

Indonesia plans to unveil a new gas pricing policy for industrial customers in March in a bid to lower energy costs for manufacturers, Energy and Mineral Resources Minister Arifin Tasrif said on Thursday.Indonesia's President Joko Widodo earlier this week asked his cabinet to come up with a strategy to lower gas prices for manufacturers to around $6 per…

Malaysia Spot Crude Premiums Hit Multi-year High

© yamashou / Adobe Stock

Asia-Pacific refineries are forking out multi-year high premiums for sweet crude produced in the region as alternative supplies from the West have become more expensive with the rise in shipping costs, several trade sources said on Monday.Lower exports from Indonesia and Vietnam and rising demand for very low-sulphur fuel oil (VLSFO) have also helped…

Indonesia Mulls Production Contract Schemes

© Zerophoto / Adobe Stock

Indonesia considers allowing for production sharing oil and gas contracts optionsIndonesia is considering letting energy companies stick with the "cost recovery" system for oil and gas production sharing contracts, the energy minister said on Monday, after the government decided to adopt a new scheme in 2017.In 2017, Indonesia adopted a scheme known as "gross split" for oil and gas production deals…

Mako Gas Field Exceeds Hopes: Conrad

Image: Conrad Petroleum

Indonesian oil & gas exploration and production company Conrad Petroleum has flowed dry gas from its Tambak-1 well located in the Duyung PSC in the West Natuna Basin, offshore Indonesia.The Tambak-1 well was designed to both appraise the Mako gas field and test the underlying Tambak exploration prospect. Coro Energy plc holds a 15% interest in this project.The…

NYK, Pertamina Ink Energy Transport MOU

From left, Gandhi Sriwidodo, Logistic, Supply Chain and Infrastructure director, Pertamina; Akira Kono, managing corporate officer and chief executive of NYK’s Energy Division, NYK; Tafkir Husni, president director, PIS. Photo: NYK

As demand for energy transportation, especially liquefied natural gas (LNG), is expected to increase in Indonesia, NYK and PT Pertamina International Shipping (PIS), a wholly owned subsidiary of PT Pertamina (Persero) agreed to a memorandum of understanding (MoU) for energy transportation.The framework of the deal sees Pertamina, the largest oil and natural gas corporation in the state…