BPMIGAS seeking buyers of Masela LNG

Upstream authority BPMIGAS will seek for buyers of liquefied natural gas (LNG) to be produced from the offshore Masela gas block in Maluku, after its production sharing contract (PSC) holder Inpex completed the tender for the front-end engineering design (FEED) for the LNG project later this year, Kontan reported on Wednesday.

Rudi Rubiandini, the director for operation of BPMIGAS, said in Jakarta on Tuesday that he hoped with the completion of the tender for FEED works this year, the construction of the Masela LNG plant would be able to begin production in 2018 as initially scheduled.

He said that not all of the LNG production from the Masela plant to be exported because a part of them should be sold in the domestic market to meet the surging gas demand from local industries.

Rudi said that the agency would also wait for the completion of the tender for the engineering procurement and construction (EPC) before seeking buyers of the plant gas production.

Meanwhile, Takanoiri Naito, the head of geology and subsurface development of Inpex Indonesia, said that the company?s plan of development (PoD) was approved by the government in December 2010. ?Now, we are completing the tender for FEED,? he said. He hoped the FEED tender for the Masela LNG plant could be completed before the end of May.

The Masela oil block, located in the deep sea area in Maluku, is expected to produce 2.5 million tons of gas and 8,400 barrels of condensate per year. Inpex, the operator, will build a floating LNG plant for the gas production. (*)