ENRG to build mini LNG cargo ship this year

IDX-listed energy company PT Energi Mega Persada Tbk (ENRG) plans to build and operate a mini liquefied natural gas (LNG) cargo ship to transport gas production surplus from the company?s Terang, Sirasun and Batur (TSC) field in the Kangean block, Kontan reported on Monday.

The Kangean block is operated by ENRG?s subsidiary PT Kangean Energi Indonesia with a participating interest of 50 percent. The other 50 percent of the ownership in the block is equally shared by Mitsubishi Corporation and Japan Petroleum Exploration Co (JAPEX).

At present, the larger part of the gas production from the field is sold to state electricity utility PT Perusahaan Listrik Negara, Pertamina Gas (Pertagas) and PT Indogas and PT Petrokimia Gresik in East Java.

ENRG President Director Imam P. Agustino said in Jakarta last week that the TSC field produced between 240 and 300 million standard cubic feet per day (mmscfd), but about 50 mmscfd of the total production has not been absorbed by the buyers in East Java.

He said that the company planned to operate a mini LNG cargo to distribute the surplus of the gas production to other parts of the country, which are still mostly in shortage of gas supply.

Imam said that that the construction of a mini LNG ship would last about 16 months. ?So, if we begin the construction in the middle of this year, the construction can be completed in 2015. He, however, refused to unveil the estimate costs for the construction of the mini LNG ship. (*)