Medco receives approval to build mini LNG in Simeggaris
Wednesday, October 7 2015 - 02:51 AM WIB
IDX-listed energy firm PT Medco Energi Internasional Tbk has received an approval from upstream authority SKK Migas for the business structure of the mini LNG plant it plans to build to process gas from Simeggaris block in East Kalimantan.
The approval was received in end-September 2015, President Lukman Mahfoedz said on Tuesday.
The mini LNG plant is designed with the capacity of processing 25 mmscfd of gas. The offtaker is state owned electricity firm PT Perusahaan Listrik Negara (PLN), Lukman said.
?We have received from SKK Migas for the business structure. In principle, (the project) is similar to Senoro which is proved successful,? Lukman said, referring to the Donggi Senoro LNG plant in Central Sulawesi, which is partly owned by Medco. The project, inaugurated in the past August, is the first LNG plant built in the country using downstream scheme.
Lukman said the mini LNG plant will built by Medco in a joint venture with partners.
?The JV is responsible for the development of the mini LNG plat. The partner must be capable in terms of technology and finance,? he said.
When asked for confirmation, Chairani Rachmatullah, PLN?s Gas and Oil Fuel Division Head, said she is not aware yet on the allocation of gas from the mini LNG plant.
Editing by Johannes Simbolon