By FITRI WULANDARI & NEIL CHATTERJEE
JAKARTA (Bloomberg) -- PT Donggi-Senoro LNG
is waiting for new natural gas discoveries before considering
plans to expand the plant its building on Indonesias
The company is focused on completing construction of the Donggi-Senoro
facility, and any expansion depends on discovery of
new gas reserves, President Director Gusrizal said in a
November 22 interview. Indonesias fourth liquefied
natural gas plant, with a capacity of 2 MMmtpy, is scheduled to
ship its first LNG cargo in 2015.
We are waiting for the upstream future
discovery, Gusrizal said. Once upstream finds new
discoveries we can think about further expansion, but it will be subject to
a feasibility study and viability.
Gas feed to the plant will begin December 2014 and shipments
to buyers will start in the Q1 2015, Gusrizal said. It has
long-term agreements to sell 1 MMtpy of LNG to Chubu Electric
Power and 300,000 tons of the fuel to Kyushu Electric Power Co.
It will also provide 700,000 tpy to Korea Gas Corporation.
Indonesia is increasing its reliance on natural gas for
exports and to meet domestic energy demand as its crude output
declines. The countrys total gas production may peak in
2018 at 10,000 MMscfd as new projects including Donggi-Senoro and
a third train of Tangguh LNG plant in West Papua begin
operation, the energy and mineral resources ministry said
Donggi-Senoro is the first LNG plant in the country
developed separately from the upstream projects intended to feed it. In
previous projects such as Bontang in East
Kalimantan and Tangguh, the natural gas producers also act as
the LNG sellers, Gusrizal said. The company has its own
marketing team unrelated the upstream parties who supply the
gas, he said.
It will buy natural gas from assets in the Matindok area
owned by PT Pertamina EP and from the Senoro Toili block
operated by PT PHE Tomori Sulawesi, PT Medco E&P Tomori
Sulawesi and Tomori E&P, it said in the website.
Donggi-Senoro is 59.9 % owned by Sulawesi LNG Development.
PT Pertamina Hulu Energi holds 29 % and PT Medco LNG Indonesia,
a unit of PT Medco Energi International, has the remaining 11.1
%. Sulawesi LNG is a venture 75 % owned by Mitsubishi
Corporation and 25 % by Korea Gas.