Donggi-Senoro LNG plant to start production in 2014

The construction of the Donggi-Senoro LNG plant facility in Central Sulawesi is expected to be completed within 46 months, Director of Corporate Affairs of PT Donggi-Senoro LNG, Andy Karamoy said.

The first LNG shipment is scheduled to take place at the end of 2014.

The implementation of the project was delayed from the initial schedule due to uncertainty over gas allocation from the project. The government finally decided that 75 percent of the gas production be allocated for export, and the remainder for the domestic market.

Andy said the LNG plant will have a capacity of 2 million tons per annum. He noted the initial production volume will depend on the completion of pipeline project.

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 operational expenses.

Among domestic buyers of the gas from Donggi-Senoro plant is the state electricity firm PLN. In July, the upstream oil and gas regulator BPMigas approved the supply of 25 mmscfd of gas from Donggi-Senoro plant to PLN for seven years. The price is expected to be determined at the end of 2013 when the Front-End Engineering Design (FEED) of the Donggi-Senoro LNG plant is completed. (*)