LNG Ltd doubles C. Sulawesi LNG plant capacity
Monday, January 30 2006 - 01:24 AM WIB
Australian firm Liquefied Natural Gas Limited (LNG) said on Monday it had firmly decided to more than double the planned production capacity of the proposed Padang (formerly Senoro) LNG project in Central Sulawesi to 1.7 MTPA. The company said it now planned to develop 2 x 850,000 tonnes LNG plants.
The original plan was to build 750,000 TPA LNG plant with gas requirement of 120 MMCFD.
The expansion, however, said the company, had caused delays in the execution of gas supply Heads of Agreement and subsequent Gas Sale and Purchase Agreement. The company said HoA would be concluded when the scope of the project is finalized.
The company said that the LNG produced from the Padang LNG project would be sold to one or more existing Indonesian LNG customers under long term LNG Sale and Purchase Agreements. ?LNG buyers continue to advise of firm demand for new long term LNg supply from mid-2008, being the targeted commissioning date of the Padng LNg project,? the company said in a statement. The company did not say the names of the potential buyers.
The company is targeting financial close for the Padang LNG project July-August this year.
Gas supply for the project will be supplied from Senoro-Toili block, which is jointly operated by Pertamina and Medco Energi.
LNG Ltd has 50 percent stake in the project with another 50 percent held by Indonesian company PT. Maleo Energi Utama. The project is the first downstream LNG company in Indonesia. (alex)