REFILE-UPDATE 1-Indonesia's Arun LNG shipments to fall in 2010

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Mon Dec 28, 2009 4:24am EST

(Refiles to fix typo in advisory line)

JAKARTA Dec 28 (Reuters) - Indonesia's shipments of liquefied natural gas (LNG) from the Arun project in Aceh are expected to fall by 6 cargoes, or 14 percent, next year on falling natural gas output, an Exxon Mobil (XOM.N) official said on Monday.

Indonesia is expected to ship 36 cargoes of LNG from Arun in 2010, down from 42 in 2009, Maman Budiman, a senior vice president at Exxon Mobil Indonesia, told Reuters

Each cargo is a standard 125,000 cubic metres.

"The supply of natural gas to the LNG plant is falling, causing lower LNG production next year," said Budiman.

"There are plans to ship 36 cargoes in 2010 according to our contract," he added.

Exxon Mobil is one of the shareholders in the project along with state oil and gas firm Pertamina.

Indonesia also expects to ship fewer LNG cargoes from its Bontang plant in East Kalimantan next year due to falling natural gas supply to the plant for feedstock.

The Bontang plant is expected to produce 279 standard cargoes of LNG next year, down from an estimated 296 cargoes this year.

An official at Indonesia's energy watchdog, BPMIGAS, said previously that Total's (TOTF.PA) Indonesian unit would produce 2.38 billion cubic feet per day (cfd) of natural gas in 2010 from its Mahakam block operation, down from 2.55 billion cfd in 2009.

Total is the main supplier of natural gas to Bontang which is then processed into LNG.

Indonesia is the world third-biggest LNG exporter after Qatar and Malaysia.

(Reporting by Muklis Ali; Editing by Ed Davies)

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