EWC: Commercial solution on Sengkang gas price identified
Saturday, September 2 2017 - 02:24 AM WIB
EWC said in a statement on Friday that it has made extensive discussions with state-owned electricity firm PT PLN, the Indonesian Ministry of Energy and Mineral Resources? Directorate General of Oil and Gas, and upstream authority SKK Migas, and have identified commercial solution potentially acceptable to all parties on the price of feedstock gas and FOB price of LNG from the Sengkang LNG facility.
?This data is now being processed for approval through the appropriate channels in Indonesia,? the company said in the statement.
?Once approved it will enable PT South Sulawesi LNG (SSLNG) to finalize matters with the Indonesian banks for funding to bring the first phase of the project into commercial operation,? EWC said, referring to its local subsidiary that is developing the LNG plant project.
As much as 40 mmscfd of gas is expected to be channeled from Sengkang PSC in South Sulawesi, operated by Energy Equity Epic Sengkang, to PLTG Benoa gas-fired power plant in Bali owned by PT Indonesia Power, a subsidiary of PLN, said Arwan, Head of Gas Marketing Division at SKK Migas to Petromindo.com in April. The Sengkang gas will be first processed into LNG for shipment to Bali and then undergoes regasification process there for transmission to the power plant.
Completion of the Sengkang LNG plant will pave way for the production of Wasambo (Walanga, Sambisambi, Bone) gas field in Sengkang PSC. The Wasambo field is projected to produce 80 mmscfd of gas. SKK Migas previously expected the LNG plant to be on-stream end of this year.
Editing by Reiner Simanjuntak