Pertamina, Medco to build $400m LNG plant in Senoro-Toili

State-owned oil and gas firm PT Pertamina and Medco E&P Indonesia have agreed to jointly develop a US$400 million liquefied natural gas (LNG) plant in Senoro-Toili JOB, which is located in Central Sulawesi province, Pertamina official said Wednesday.

Pertamina vice chairman Mustiko Saleh said the plant will have capacity to turn out approximately 1.95 million tons of LNG per year and is expected to commence delivery by March 2009.

Senoro-Toili JOB is jointly owned by Pertamina and Medco E&P under 50:50 basis. According to Pertamina, the Senoro field of the block, which was discovered in 1999, is estimated to contain around 3.5 trillion cubic feet (TCF) of natural gas.

Previously, the JOB signed a Head of Agreement with PT Panca Amara Utama (PAU) on Senoro field gas' sales of around 0.8 TCF for a period of 20 years. PAU proposes to build a fertilizer plant in the same province.

The JOB has also signed an Exclusivity Agreement with the consortium of Australia's Liquefied Natural Gas Limited and Indonesian PT Maleo Energi Utama, which provides the consortium the exclusive right to get 0.8 TCF of natural gas per year from Senoro field. The gas will be used to fee a proposed mini LNG plant with capacity of 840,000 tons per year. This US$240 million project is expected to start shipment in the first quarter of 2008. (godang)