Minister of Industry studies multiplier effects of Abadi LNG project
Friday, January 8 2016 - 01:03 AM WIB
Minister of Industry Saleh Husin expects the gas from the Abadi field within Masela block in Maluku province will not only be used to produce LNG but also to drive the development of various industries in the region, including petrochemical industry.
Saleh made the statement to the press following a meeting on Thursday with Amien Sunaryadi, Head of upstream authority SKK Migas, to discuss the Abadi LNG project and its possible impacts on the development of industries.
He refused to answer the question whether the government has decided to approve the development of a floating LNG (FLNG) plant for the Abadi gas. FLNG Is the option proposed by the block?s owners ? Inpex Corp and Royal Dutch Shell ? to process Abadi gas, but some top governmental officials proposed an onshore LNG plant to process the gas.
Saleh said once completed, the Abadi LNG plant will need a lot of small vessels to deliver its LNG production to various places in the country. The vessels will need ports to dock and at present, there are few ports available in Maluku or neighboring East Nusa Tenggara province for the vessels to dock. Such ports need to be built to support the Abadi LNG project, Saleh said.
?Shipyards need also to be built. Thereby, SKK Migas, in coordinating with the President, needs to gather the national shipyard owners and push them to expand their business in eastern Indonesia. Once the Abadi project is realized, it will need various types of supports,? Saleh said.
Meanwhile, Muhammad Khayam, Director of Basic Chemicals Industry, explained the oil and gas industry needs logistical supports. At present, Batam and Singapore serve as the centers of logistical supports for the operation of oil and gas companies, including those in eastern Indonesia, which is now home to two LNG production plants, namely Tangguh LNG plant in West Papua and Donggi Senoro LNG plant in Central Sulawesi. With the Abadi LNG plant going to be developed, it?s time to build logistical centers in eastern Indonesia, he said.
He also noted that at present, Indonesian downstream industries now lack gas supplies. Thanks to the Abadi gas, it is expected that gas needs of industries, including those in eastern Indonesia, will be fulfilled.
He said given the massive multiplier effects that the Abadi LNG project may cause to the surrounding areas, the government will establish a special authority tasked to supervise all industries that may grow in the southern Maluku area as a result of the positive impacts of the Abadi LNG project. The special authority will be established through a governmental regulation, he said.
Editing by Johannes Simbolon