First Drop from Tangguh LNG

After four months of delay, Tangguh LNG plant is expected to produce its first drop on June 28, next week. But it is not clear when will be the first shipment from the plant to China's facility in Fujian. 

Evita Herawati Legowo, director general for oil and gas at energy and mineral resources ministry, said that first drop is expected June 28. Energy minister Purnomo Yusgiantoro said last month that the first shipment will be July 1st. As production starts in Tangguh, Bontang LNG plant might has to cut its operating rate because buyers---Japan, Taiwan, and South Korea---have cancelled the purchase of 18 cargoes this year.

Fujian LNG terminal, operated by CNOOC---which is also a partner in Tangguh LNG plant, entered full operation late last month. The terminal will receive 15 LNG cargo shipments from Indonesia within one year. Unter the long-term contract, Fujian LNG terminal will receive 2.6 million tons of LNG yearly from the BP-led Tangguh LNG plant.

CNOOC has begun the building of two additional storage tanks at its second terminal this year after local government decided to double Fujian LNG terminal's capacity. Construction of these new tanks, 160,000 m3 each, is scheduled to be completed in 2011. 

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