BPMIGAS allocates portion of Donggi-Senoro gas to Pancara Amar
Tuesday, January 3 2012 - 03:46 AM WIB
The upstream oil and gas regulator BPMIGAS has agreed to allocate 40-60 billion British thermal unit per day (BBTUD) of gas from Donggi Senoro LNG project to fertilizer plant to be built by PT Pancara Amar Utama (PAU) in Sulawesi.
The regulator is now drafting a letter to be submitted to the Energy and Mineral Resources Ministry to seek approval for gas price and volume.
?It has been decided. Pancara Amar Utama will get the gas of between 40 to 60 BBTUD. We are now preparing the gas sales and purchase agreement document (PJBG) and defining the gas price formula,? Rudi Rubiandini, Deputy Chairman for Operation of BPMIGAS, told Petromindo.com.
He said BPMIGAS will submit the letter to the Energy and Mineral Resource Minister Jero Wacik in mid January for approval.
Earlier, BPMIGAS has set gas price scenario for Pancara Amar, that is a floor price of US$4 per BBTUD and ceiling price of $5 per BBTUD, with a possibility of 3 percent increase if the price of ammonia gas is above $500 per ton. The gas is expected to be delivered in 2015.
PAU is among potential buyers of the Donggi-Senoro LNG. The other domestic buyers interested to purchase gas from the project are PT Pupuk Sriwijaya and state electricity company PT PLN.
The Donggi-Senoro LNG project is operated by PT Donggi Senoro LNG (DSLNG), which is a joint venture between Mitsubishi Corporation (51 percent), Pertamina Energy Services Pte. Ltd. (PES) (29 percent), and PT. Medco LNG Indonesia (MLI) (20 percent). PES is a subsidiary of Indonesia?s state-owned oil and gas company, PT Pertamina (Persero), and MLI is a wholly owned company of oil, gas energy firm PT Medco Energi International Tbk.
Edited by Roffie Kurniawan