Pertamina says C. Sulawesi LNG dream has not died yet

Pertamina?s dream to develop an LNG plant in its Donggi gas block in Central Sulawesi had not died despite previous failures to discover new reserves that would justify development of an LNG plant, the company official said.

E&P director Hari Kustoro said Pertamina would intensify exploration to find new gas reserves in the area. ?Pertamina will drill two exploration well in the block by year end and would be followed by drilling of several wells in the following years,? he said.

He hoped that through intensive drilling program Pertamina would be able to increase the block?s gas reserves to at least 3.5 TCF, tripling the current reserves, to justify the development of an LNG plant. ?Pertamina is confident about the block?s gas potential,? he said.

?LNG plant is currently the best and cheapest option to develop a remote gas fields like Donggi. Therefore, Pertamina would wait until we get adequate gas reserves,? he said.

Donggi is part of Matindok Block. Matindok consists of the Donggi gas block Pertamina, and the Senoro-Toili gas block, which is jointly operated by Pertamina and Medco Energi Internasional.

The LNG plant is initially planned using gas feed from the two blocks. Medco apparently had given up its LNG dream and plan to devlop mini-LNG plant and petrochemical complex in Senoro Toili Block.

Several companies including Malaysian oil firm Petronas had withdrawn intention to participate in Matindok LNG project upon learning that the block had yet accumulate sufficient gas reserves. (alex/godang)