Luhut favors onshore LNG for Masela, saying FLNG uncontrollable

Coordinating Minister for Politics, Law and Security Affairs Luhut Panjaitan said he supported the option of building an onshore LNG plant for the Abadi field within Masela block, Maluku, citing that the alternative option -- a floating LNG (FLNG) plant ? risks the LNG being taken outside of the country illegally.

 

"If the LNG plant is situated on land, it will be controllable. If it is located offshore, it will be difficult to control. We have to keep an eye on the operation process. Otherwise, (the LNG) may be secretly taken outside of the country unbeknownst to us,? Luhut was quoted by Antara as saying on Thursday during a Maluku community gathering in Ambon.

 

Luhut said he has communicated his opinion to President Joko Widodo and Maluku?s Governor Said Assegaf also agreed with him.

 

The onshore LNG option first proposed by Coordinating Minister of Maritime Affairs Rizal Ramli who in one occasion also cited the risk of theft as one of the reason he is opposed to the FLNG option. If an FLNG plant is built in Abadi field, there is a risk that the LNG produced from the plant will be secretly taken outside of the country. The FLNG option is proposed by the owner of Masela block, namely Japanese firm Inpex Corp. and European firm and supported by upstream authority SKK Migas and many experts, business players and academics. (*)