DSLNG signs condensate sale agreement for domestic market
Monday, April 25 2016 - 11:54 AM WIB
?With this sale and purchase agreement, we contribute in the condensate supply enhancement to satisfy domestic market demand,? said DSLNG President Director Tanudji Darmasakti, during the signing ceremony of the agreement in Jakarta on Monday.
The volume of condensate produced is approximately 2,300 barrel per day with contract period of three years.
Donggi Senoro LNG Plant, worth US$2.8 billion of investment, located at Banggai regency of Central Sulawesi province, has successfully entered the operational phase since June 2015 and the LNG cargo delivery has been started since 2nd August 2015 for both domestic and international markets.
In addition to producing LNG, the plant also produces condensate as side product of processing gas into LNG.
Donggi Senoro LNG plant receives feed gas from two upstream producers namely JOB Pertamina-Medco E&P Tomori Sulawesi (PMTS) which operates Senoro Toili Block and PT Pertamina Exploration and Production (EP) which operates Matindok Block. Both producers will also supply gas for domestic users, among others: ammonia plant and power plant.
The Donggi Senoro LNG project is the first project in Indonesia using downstream business scheme, which separates the gas production at the upstream and the LNG processing at the downstream. The downstream business scheme allows optimization of state revenue because the LNG plant investment is not subject to cost recovery.
The Donggi Senoro LNG plant has the capacity to produce two million ton per year of LNG. The Donggi Senoro LNG project is a partnership between PT Pertamina (Persero), PT Medco Energi Internasional Tbk, Mitsubishi Corporation, and Korea Gas Corporation. PT DSLNG?s scope of business is to process natural gas to LNG.
Editing by Johannes Simbolon