DSLNG to sell excess LNG cargoes in spot market
Tuesday, June 13 2017 - 03:00 AM WIB
PT Donggi-Senoro LNG (DSLNG), the owner of the Donggi Senoro LNG plant in Banggai Regency, Central Sulawesi Province, expects to have up to seven excess LNG cargoes this year due to rise in natural gas production which the domestic market is unable to absorb.
The company has started selling part of the excess LNG cargoes on the spot market. "Our excess LNG cargoes for this year is around six or seven cargoes, three of which have been sold to buyers in Asia Pacific. One of them is a long-term contract buyer," Aditya Mandala Corporate Affairs Director of DSLNG said on Monday without disclosing the names of the buyers.
Aditya said that DSLNG has been trying to allocate the surplus cargoes to domestic buyers but so far there has been no conformation yet from the buyers, prompting the company to go to the sport market. "But, from domestic side until now there has been no confirmation of demand. Indeed we always discuss with PGN and Pertamina," he said.
He said that 34 cargoes have been committed to long-term overseas buyers primarily 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).
The DSLNG plant has the capacity to produce two million ton per year of LNG. 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 Reiner Simanjuntak