Govt okays Masela PoD

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said on Wednesday that he has approved Plan of Development (PoD) for floating LNG complex at Inpex-operated Masela block in Timor Sea.

Purnomo said that under the PoD, Inpex will develop a floating LNG facility with initial capacity of 4.5 million tonnes per annum with operations seen to start in 2016. Current reserve is adequate to double the initial capacity, he said.

Purnomo said with PoD approval Inpex could go on to tender the project?s FEED and EPC.

He said Inpex would invest US$12 billion to develop the project. He also said that constructing a floating LNG plant is the most optimum alternative than building onshore facilities in a nearby island or to pipe the gas to Australia.

Earlier reports said that Masela has 10 TCF of gas reserves. (kanti)