Jonan says he?s losing patience with Inpex
Thursday, May 4 2017 - 03:26 AM WIB
Minister of Energy and Mineral Resources Ignasius Jonan said he is losing patience with Inpex over the Masela block project as the Japanese firm has yet to complete the requested preliminary front end engineering design (Pre-FEED) for the planned Abadi gas development project in the block.
?I?m losing patience,? Jonan said on Wednesday as quoted by Kontan. He said that he had been in office for six months and Inpex has yes to complete the Pre-FEED he requested. ?If the pre-front end engineering design is not yet (completed), I will just cancel Inpex. It?s (taking) too long,? he said.
Jonan explained that with the Pre-FEED document completed, the government will be able to among others decide allocation of gas from the project, the capacity of the LNG plant, and its location. The document will also be used as basis for the investors in developing the project.
As has been previously reported, the minister has demanded Inpex, the operator of the Masela block in Maluku Province, to quickly start making Pre-FEED documents for two onshore LNG plant scenarios in two locations. The first is an LNG plant with capacity of 7.5 million tons per annum plus pipeline gas of 474 mmscfd, and the second with capacity of 9.5 mtpa plus pipeline gas of 150 mmscfd. There are also two alternative locations for the project: Aru Island or Yamdena Island, in Maluku Province.
Meanwhile, Kontan quoted Inpex Senior Manager for Communication and Relations, Usman Slamet as saying that the company has yet to complete the required Pre-FEED because there are remaining issues that have to be first discussed with the government.
President Joko Widodo decided in March for Inpex to develop onshore LNG facility at the Masela block project in Maluku, despite an earlier proposal from the company and partner Shell to build an offshore facility. Inpex has demanded a number of incentives for the government to make the onshore project commercially feasible including increasing the LNG production facility to 9.5 mtpa. (*)