BPMIGAS to allocate gas from Tangguh and Masela for domestic terminals

Upstream oil, gas authority BPMIGAS said on Tuesday that LNG supply for the proposed LNG terminals in Sumatra and Java would also be supplied from BP-operated Tangguh LNG project extension and Inpex-operated Masela LNG project.

Chairman R. Priyono said if price is right, both projects would supply LNG to the proposed LNG receiving terminals in Arun in Aceh North Sumatra, Jakarta, and East Java.

State gas distribution firm PT PGN is planning to build LNG terminal in Belawan and in Jakarta in cooperation with state oil, gas firm PT Pertamina (Persero). Pertamina is also planning to build an LNG terminal in East java. BPMIGAS is also mulling to turn some facilities at Arun LNG plant in Aceh to become LNG receiving terminal. The first three LNG terminals are expected to start operations end of 2011 or early 2012.

BP said earlier this month that it would make Final Investment Decision in 2011 and the plant?s expansion might become onstream in 2015. It did not give detail about the planned capacity of the expansion. Inpex is planning to build a floating LNG terminal in Masela with capacity of 4.5 million tonnes per annum, which will start production in 2016.

Priyono said in November 2009 that some of LNG production from Masela will be sold to domestic market.

French oil giant Total SA has signed a memorandum of understanding to supply 11.75 million tonnes of LNG to Jakarta receiving terminal for 10 years from its Mahakam gas field. (bernard)