BPMIGAS not aware of Sengkang LNG plant plan

Indonesian upstream watchdog BPMIGAS said on Friday it was not aware of ASX-listed firm Energy World Corporation (EWC) plan to build 4x500,000 tonnes of LNG plant in Sengkang PSC, South Sulawesi.

?BPMIGAS never received any proposal or request from the operator of Sengkang PSC to build LNG plant,? BPMIGAS Chairman Kardaya Warnika told reporters. ?Under the PSC system, such plan must get approval from the government. May be they?re just dreaming,? he added.

Separately BPMIGAS Deputy Chairman in Charge of Planning Ahmad Lutfi said that Sengkang PSC may not have sufficient gas reserves to build 2 MTPA of LNG plant unless the operator made new discoveries.

EWC, on the other hand had repeatedly announce intention to build LNG plant in Sengkang using existing gas reserves. The company has appointed Standard Chartered and Mizuho Bank as financial advisors for the project. It also has held talks with several LNG potential offtakers and has ordered components for the LNG plant.

The company planned the LNG plant to come onstream late 2009.

?They can order what they like and talk to whom they like, but without BPMIGAS or government?s approval, nothing will happen in Sengkang,? Kardaya said.

EWC, through its unit Energy Equity holds 100 percent interest in the block, which is currently producing gas with output entirely supplied to EWC?s 95 percent-owned 138-MW power plant, which is located near the block. (alex/godang)