BPMigas approves supply of Donggi-Senoro gas for PLN

Upstream oil and gas regulator BPMigas has approved the supply of 25 mmscfd of gas from Donggi Senoro plant to state electricity firm PLN for seven years, according to Senior Manager of Gas and Oil Procurement at PLN, M. Suryadi Maerdjoeki.

He said on Monday that the gas will come from field owned by PT Pertamina EP and PT Medco, respectively at a volume of 20 mmscfd and 5 mmscfd.

Suryadi said that the gas from the Pertamina EP and Medco fields would be transferred to the Donggi-Senoro LNG facility first before channeled to PLN in the form of LNG.

He said that the price for the LNG has yet to be determined, but PLN expects it is BPMigas which will decide on the price. BPMigas has said that the price is expected to be determined at the end of 2013 when the Front-End Engineering Design (FEED) of the Donggi-Senoro LNG plant will be completed.

PLN is expected to start receiving the LNG in 2015-2016, when production is scheduled to begin.

Elsewhere, PLN is still awaiting for BPMigas approval on gas supply from a number of locations including from Sengkang-South Sulawesi at a volume of 70 mmscfd, Bontang-East Kalimantan 60-90 mmscfd, and Salawati-West Papua 20 mmscfd.

The LNG will be used as fuel for PLN?s power plants in the Eastern part of Indonesia. (giok)