LNG Limited to double proposed C. Sulawesi mini-LNG plant capacity

Australian firm LNG Limited is seeking to double capacity of the proposed mini-LNG plant in Senoro-Toili Block Central Sulawesi by adding another train to the project.

The company revealed in a presentation filed with the Australian Stock Exchange Wednesday that the additional plant would have capacity of 840,000 metric tones per annum, similar to the first plant. First unit is planned to come onstream March 2008, followed by the second unit in December 2008.

The company revealed that the move was made to tap increasing LNG demands, especially from North Asia and India. The company is aiming new buyers as well as existing or renegotiated Indonesian contracts as market for first and second trains.

The company expects gas sales agreement for first train with Senoro-Toili block co-venturer; Medco Energi and Pertamina could signed late December or early January next year. LNG will be contracted to buy 800 BCF of gas with flow rate of 120 MMCFD. The company also expected to sign LNG sales HoA with undisclosed buyer(s) early next year.

The company said it had commenced land purchase negotiation as well as environmental process for the project. The company also said FEED for LNG plant had 70 percent completed and FEED for jetty and shiploading facility had commenced. It had received expression of interest from 2 international banks for debt advisor?s role and already shortlisted preferred contractors. (alex)