MEMR approves request for gas allocation from Masela block

By Godang Sitompul

The Ministry of Energy and Mineral Resources (MEMR) has generally approved a request from three companies to be allocated gas from the upcoming Abadi field gas project in Masela block in Maluku Province.

?We have received the request and responded. We accept the request ? We?ll try based on the terms and conditions,? said Deputy Minister of Energy and Mineral Resources Arcandra Tahar on Wednesday in response to a question whether the ministry has approved the request. He did not provide further details.

Minister of Industry Airlangga Hartarto said in a November 4 letter to the Ministry of Energy and Mineral Resources, upstream authority SKK Migas, and the Maluku Provincial administration that three companies planning to build gas-based industries have asked for gas allocation from commercial led lighting the Abadi gas field project.

Airlangga said in the letter that the three companies have asked for a gas allocation of up to 474 mmscfd. The three firms include PT Pupuk Indonesia (214 mmscfd), Elsoro Multi Prima/Sojitz (100 mmscfd) and Kalimantan Metanol Indonesia (160 mmscfd).

The government has been urging Inpex Corp, the operator of the Masela block, to immediately start development of the Abadi gas field project in the block.

But Inpex has asked for a number of incentives from the government to make the gas-rich Abadi field project commercially feasible after the government changed in March of this year the production scheme for the project to an onshore LNG production facility from the floating LNG facility as previously proposed by the company and had been approved by SKK Migas. The government has yet to response to the Inpex request.

Editing by Reiner Simanjuntak