Donggi-Senoro LNG plant to reach peak production in H1 2016

By Febry Silaban

The Donggi Senoro LNG (DSLNG) plant in Banggai regency, Central Sulawesi is projected to reach a peak production in first semester of next year, according to a top official of PT DSLNG, the operator of the plant.

"We are targeting the plant to reach full production of approximately two million tons per year, or about 33-35 shipments of cargo annually in the first half of 2016," President Director of DSLNG Gusrizal told Petromindo.com.

He said, the 35 cargoes have been committed to buyers in Japan and Korea. DSLNG has signed a heads of agreement to supply Chubu Electric Power Co. (1 mtpa for 13 years), Kyushu Electric Power Co. (0.3 mtpa for 13 years), and Korea Gas Corp. (0.7 mtpa for 13 years).

At present, the plant receives 150 mmscf of gas supplies. The supplies will increase to 335 mmscd at the time it reaches peak production. At its peak production, the DSLNG plant will receive 250 mmscfd from Senoro-Toili block and 85 mmscfd from Matindok block, according to Gusrizal.

Meanwhile, Director of Development at IDX-listed Medco Energi Internasional Tbk, Eka Satria said, this year (from July to December) the plant is estimated to produce around 15-16 cargoes, six of which will be exported to committed buyers Japan and Korea. Nine or ten cargoes are uncommitted and have been offered on the spot market.

Four of the nine or ten uncommitted cargoes have been bought by domestic and overseas buyers, including one cargo for the Arun Regassification Terminal. There thus remain five to six cargoes which still have no buyers, he said.

The US$2.8 billion DSLNG plant is owned by a consortium comprising of PT Pertamina Hulu Energi (29 percent), Medco (11.1 percent), and Sulawesi LNG Development Ltd. (59.9 percent). Sulawesi LNG Development Ltd. is a joint venture between Japanese firm Mitsubishi Corporation (75%) and Korea Gas Corp. (25 percent).

Editing by Johannes Simbolon