EWC gets stern warning from BPMIGAS over LNG plant plan
Friday, November 13 2009 - 12:59 AM WIB
Spokesperson Sulistya Hastuti said that Energy Equity EPIC Sengkang has signed MoUs to sell LNG from the proposed LNG plant while it had not submitted plan of development (PoD) to BPMIGAS yet and has yet to secure appointment as gas seller from the government.
Moreover, he said, Energy Equity has not certified uncommitted gas reserves at the PSC that would be used as feed to the plant.
?That?s a major violation! BPMIGAS considered the MoUs Energy Equity have signed as null and void. BPMIGAS has issued a stern warning to Energy Equity not to take any move before its PoD has been approved and a seller?s appointment had been secured by the company and they have agreed to comply,? he said.
Energy Equity has signed an MoU to supply LNG from the Sengkang project to state gas distribution company PT Perusahaan Gas Negara (PGN) in September 2009 and with PT Indonesia Power, a unit of state electricity firm PT Perusahaan Listrik Negara (PLN), in May 2008.
The company?s parent company EWC has repeatedly announced its plan to build a 500,000 ton per annum LNG plant in Sengkang with a view to quadruple the capacity to 2 million tons per annum in the next few years.
EWC claimed in October 2008 that the plant would start production in late 2009.
The company has ordered equipments for production facilities and in August 2008 it reported to have secured US$60 million loan from Standard Chartered Bank and Mizuho Corporate Bank Limited to partly finance the project.
?The fact that EWC have published such information before having all necessary approval is very misleading,? he said. (alex)