Genting proposes to build own LNG plant

By Bernard Loebs

Malaysian firm Genting Oil Bhd has sent a proposal to upstream authority SKK Migas to build its own LNG plant to process into LNG the gas it has discovered in the Kasuri block in West Papua, according to a source.

Genting said that it only wants to build a small and mid-size LNG plant in order to cut the investment of the project.

According to the source, SKK Migas is studying the proposal, wondering why the firm wants to build its own LNG plant, rather than deliver its gas to the Tangguh LNG plant, which is situated close to the block, operated by BP Plc.

The firm is now in the process of formulating Plan of Development (PoD) for the block.

In January of this year, Nara Nilandaroe, General Manager of Genting Oil Kasuri Ltd. said the firm will submit a PoD for the Kasuri block at the end of this year.

There isn?t yet any official estimate of Kasuri?s gas reserve, but former head of SKK Migas Johannes Widjonarko said last year that the block has recoverable gas reserves of 6 tcf.

Editing by Johannes Simbolon