(EnergyAsia, January 30 2013, Wednesday) — Liquefied natural gas (LNG) consumers will have further reason to prepare for higher prices as the world’s third largest supplier said its production could decline by more than six percent this year to 297 cargoes. Each shipment of LNG cargo varies between 125,000 and 175,000 metric tons.

Indonesia’s oil and gas regulator SKMigas is predicting the country’s natural gas production to decline and consumption to rise this year. One of its three main LNG terminals, the BP-led Tangguh terminal in West Papua province, faces disruption to its operations.

The plant, together with Arun in Aceh and Badak in East Kalimantan, have a combined annual production capacity of 43.9 million tons. Last year, they produced a total of 320 cargoes, with Tangguh contributing 103, Badak 193 and Arun the remaining 22.