Bontang LNG may get additional gas supply from Sebuku gas field

Pearl Energy, a subsidiary of Abu Dhabi firm Mubadala Development Company, plans to send gas production from Sebuku PSC, offshore East Kalimantan to Bontang LNG plant, also in East Kalimantan, through a pipeline, a company official said on Thursday.

Gadjah E. Pireno, Exploration manager of Pearl Energy Group Indonesia told Petromindo.Com that the company had submitted plan of development of the block, which location is close to South Kalimantan, to upstream authority BPMIGAS and expected the field could start production in 2010. The field, which has 300 BCF reserves, could produce gas at the rate of 100 MMCFD.

Gadjah said under the scenario to send Sebuku gas to Bontang, Pearl will build a 300-km 14 inches pipeline to flow gas to VICO Indonesia?s Senipah facility and would flow gas from Senipah to Bontang LNG using VICO?s existing pipeline.

Gadjah said Pearl will spend US$300 million to develop the field.

BPMIGAS Deputy Chairman in charge of Marketing Eddie Poerwanto told Petromindo.Com earlier that sending Sebuku gas as feed to Bontang LNG plant would greatly improve the project?s feasibility as Bontang LNG is sold at much higher price compared to domestic price. More over, additional supply of gas would help Bontang to get supply boost, as the plant had been struggling with gas feed decline in the past few years, he said.

Eddie, however, said that some part of LNG produced from Sebuku gas must be sold to domestic market.

Pearl has 100 percent interest in Sebuku PSC.(alex)