EWC in discussion with potential LNG offtakers

ASX-listed firm Energy World Corporation (EWC) reported on Monday that has continued to progress discussions with potential offtakers for the LNG located both in Indonesia and overseas.

?The discussions have been positive and are ongoing with significant interest from the parties to purchase the full production output from the LNG plant at market competitive rates. A number of these parties have also taken the opportunity to undertake a review of our hydrocarbon reserves and have confirmed they agree with the company's reserve assessments,? the company said in a report.

The company is planning to build a mini-LNG plant in its Sengkang PSC, South Sulawesi with capacity could reach 2 million tonnes per annum.

The four 500,000 tons per annum mid scale modular LNG liquefaction production plants and electric motor driven in line centrifugal compressors that when combined will make up the 2 million tons per annum facility are now being manufactured in factories located in North America and Europe and remain on schedule for first phase LNG production in the final quarter of 2009, the company said.

The company also said that a 350-km 2D high definition seismic program is scheduled to commence in April and May 2008 within Sengkang gasfield. The areas over which the seismic will be conducted are those that indicate the strongest hydrocarbon leads.

Once this new seismic has been completed and evaluated, a program for the future hydrocarbon development of the gasfield will be agreed. This program is likely to commence towards the end of 2008 and continue through 2009 and could include well work-overs on some of the 18 wells already drilled and new drilling where appropriate.

New hydrocarbon identified will be added to the company's existing proven reserves that are already sufficient to facilitate the production of 1 million tons of LNG per annum for period of between 5 and 7 years or 2 million tons of LNG for a period of 2.5 to 3.5 years, the company said.

Currently, gas production from Sengkang si piped to the Sengkang 135-MW Independent Power Producer, which is also majority owned by EWC. Sengkang power plant is set to expand capacity to 315-MW within the next few years.(alex/denny)