BPMIGAS prefers floating LNG plant for Inpex? Timor Sea block

Japan oil, gas firm Inpex Corp. may build floating LNG plant with capacity of 4 million tonnes per annum at Masela Block in Timor Sea, a BPMIGAS official said on Thursday.

BPMIGAS Deputy Chairman in charge of operations Dodi Hidayat told Petromindo.Com on BPMIGAS tends to opt to build floating LNG plant in the block rather than bringing gas from Masela to be processed in Darwin, which is located some 400 kilometers from Masela, far nearer than 800-km distance to the nearest Indonesian shore.

“Government would rather see Masela gas be processed domestically, and therefore Inpex is being directed to plan to build floating LNG plant,” he said, adding that plan to build floating LNG plant is currently under intensive study by Inpex and BPMIGAS.

Australia’s Northern territory government had repeatedly expressing its intention that Masela gas be pipled to Darwin to be processed into LNG in Bayu Undan LNG project.

Gas reserves at Masela are estimated to be around 4-7 TCF.

Inpex is currently undertaking delineation drilling campaign confirm the block’s reserves prior to submitting plan of development, Dodi said, adding that PoD for the LNG project might be submitted in 2008 with construction could commence as early as following year.(godang)