BPMIGAS to set aside Donggi Senoro gas for fertilizer plants

The upstream oil and gas regulator BPMIGAS will submit a proposal to the Energy and Mineral Resources Ministry next week to seek approval that portion of gas from the Donggi Senoro LNG project will be allocated for fertilizer plants in South Sulawesi.

Rudi Rubiandini, deputy head for operation of BPMIGAS, said BPMIGAS proposes 60 MMSCFD of gas volume from the Donggi-Senoro LNG project will be allocated for the planned fertilizer plants at price of US$5 per MMBTU.

He said the government is planning to build fertilizer plants near the Donggi-Senoro LNG project.

?We hope that the energy minister will approve the proposal by end of this year,? Rudi Rubiandini said.

The construction of the Donggi-Senoro LNG plant is estimated to cost US$ 2.8 billion, including the costs to build refinery, land clearing and other expenses.

The LNG plant is expected to start commercial operation in the second semester of 2014, with the first LNG shipment expected to take place at the end of 2014.

The Donggi Senoro LNG project is being developed by a consortium comprising of PT Pertamina, PT Medco Energi International and Mitsubishi. (bernard)