Indogas selects Black & Veatch, SK for Bali LNG project FEED

Global engineering, consulting and construction company Black & Veatch and its consortium partner SK Engineering & Construction (SKEC) have been selected by PT Indogas Kriya Dwiguna (Indogas) to perform front-end engineering design (FEED) LNG facilities in Indonesia, Black & Veatch said in a statement released Thursday.

SKEC/Black & Veatch Consortium will perform FEED of the LNG liquefaction plant on Pagerungan Island ? around 250 kilometers north of Bali, as well as two LNG receiving terminals on Bali.

The LNG plant will be able to liquefy 50 MMSCFD of natural gas that will be stored in a 20,000 cubic meter LNG tank. The LNG will then be transported to the two LNG terminals using purposely-built LNG vessels. Each terminal will have 5,000 cubic meters of storage capacity and 25 MMSCFD of send-out capacity.

When completed, the facilities will provide a long-term supply of cleaner burning and more economical natural gas as fuel for power stations on the island of Bali. The power stations currently use petroleum-derived diesel to generate electricity.

?While Indonesia has plenty of natural gas reserves in relatively short distance from Bali island, the deep sea surrounding the island and the strong oceanic currents make pipeline construction to the island uneconomical,? said Faiz Shahab, President Director of Indogas. ?Black & Veatch?s PRICO LNG Process provides a highly efficient means of liquefying and storing natural gas for transport by shipping vessels to Bali, providing our customers with a more cost-effective and cleaner fuel source.?

The PRICO Process uses a single-mixed refrigerant loop for natural gas liquefaction and has several key advantages, including the lowest capital costs of all competing technologies, a simplified refrigeration system requiring minimal equipment and simplified control and flexibility in feed gas composition.

?The PRICO Process is utilized in small and mid-sized LNG terminals worldwide because of its efficiency and operational flexibility,? said Brian Price, Black & Veatch?s Vice President of LNG Technology. ?This flexibility is invaluable for clients such as Indogas because they receive natural gas from multiple sources with varying composition and conditions.?

PT Indogas Kriya Dwiguna (Indogas) is a wholly -owned subsidiary of PT Prime Petroservices Tbk. The company has signed deal to supply some 300,000 tonnes of LNG per annum under long-term contract to Indonesia Power's power plants in Bali. Gas for the LNG plant would be sourced from Terang-Sirasun gas field in Kangean PSC, offshore East Java.(alex)