Inpex may build onshore LNG plant for Masela

Japan oil, gas firm Inpex Corporation may build an onshore LNG plant for its Masela giant gas block in Timor Sea, rather than develop a floating LNG plant as recent study showed that the onshore option was not quite difficult to build as initiallly thought, a government official said on Friday.

Director General of Oil and Gas at the Ministry of Energy and Mineral Resources Evita Legowo told reporters that Inpex may pipe its gas 150 km to Saumlaki island, in Tanimbar islands, Maluku, where LNG processing plant might be built.

?The deep through that was thought to exist between the block and the island that would make pipeline construction impossible turned out to be not that deep and was not affected by tectonic activities. The construction cost of an onshore LNG processing facilities is 25 percent lower than the construction cost of a floating terminal and it is also safer from weather-related risks such as storm,? Evita said.

Evita said that government and Inpex are currently studying more details of the possibility.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said Indonesia will also get more benefits if Inpex builds an onshore LNG terminal as it would positively affect Maluku development.

Inpex initially plans to build a floating LNG plant with capacity of 4.5MTPA in Masela, which has an estimated reserves of 10TCF, with an investment of US$14.5 billion. The plant is expected to become onstream in 2016-17. (godang)