JAKARTA - A gas pipeline leak in Indonesia's Arun field operated by US oil major Exxon Mobil Corp. may affect liquefied natural gas (LNG) delivery, the company said on Wednesday.
"Exxon Mobil recognises that the incident may likely impact LNG cargo delivery," Exxon Mobil Indonesia's spokeswoman Deva Rachman said in statement.
"However, the extent of such impact cannot be established until both the cause of the leak and the appropriate repair measures are determined."
She said Exxon Mobil was continuing to make progress in responding to the minor gas leak near the PT Arun LNG plant, in Northern Aceh on Dec. 9.
"The contingency plans include steps to activate alternative gas lines as well as repair plans for the leaking valve," Rachman added.
An official of oil watchdog BPMIGAS said the leak might reduce total LNG cargo delivery from Arun in 2005. Arun has exported 69 cargoes so far this year, mainly to South Korea and Japan.
"I think this year LNG exports from Arun may be less than 75 cargoes because of this incident. By how much, we will see as repairs develop," the BPMIGAS official, who declined to be identified, told Reuters.
Exports from the Arun plant have been projected to dip next year to 73 standard cargoes, an official at the Arun plant had said earlier.
The Arun LNG plant is in Aceh, the Indonesian province on the northern tip of Sumatra island that bore the brunt of the tsunami in December 2004. The plant largely escaped damage.
Indonesia, the world's top LNG exporter, is struggling to meet export commitments for 2005, as output has declined and supplies have been diverted to the domestic market.
REUTERS NEWS SERVICE
