Buyers of Salawati mini LNG plant not certain yet

By Godang Sitompul

Upstream authority SKK Migas is waiting for a certainty of gas buyers for the liquefied natural gas (LNG) mini plant which will be built by state oil and gas company PT Pertamina and BUMD (local administration owned firm) Raja Ampat regency of Papua in Salawati, Papua.

So far, both companies have not yet reported any potential buyers of the gas from the LNG mini plant.

"SKK Migas has always required the certainty of buyers first. If the developers are private ones, they have to pass through a beauty contest. If BUMD and for electricity, they can be directly appointed. But so far, there is no clarity on this,? SKK Migas Commercialization Deputy Widhyawan Prawiraatmadja told Petromindo.com in Jakarta on Tuesday.

He did not give any further details.

But a reliable source told Petromindo.com that the plan of Pertamina and BUMD Raja Ampat to build the LNG mini plant may be cancelled, due to the absence of 'green light' from the board of directors of Pertamina and also from SKK Migas.

Previously, Senior Vice President of Gas and Power with the directorate of gas at PT Pertamina, Salis Aprilian said that the plan of Pertamina and its partner BUMD Raja Ampat to build the mini LNG plant in Salawati Papua, happened to be made at the same time with that of the development of mini LNG plant in Simenggaris, East Kalimntan.

Editing by Benget Besalicto ST