PIM eyeing Donggi-Senoro LNG supply
Wednesday, August 19 2009 - 01:26 AM WIB
?I will discuss the possibility of buying the Senoro gas with Medco,? Mashudianto, the president director of the Aceh-based fertilizer producer, said last week.
State owned electricity firm PT Perusahaan Listrik Negara (PLN) has also voiced a similar interest to buy gas from the Donggi Senoro LNG project.
Mashudianto said that the gas from the project is necessary to secure long-term gas supply for the firm. He said that PIM's existing gas supply contracts would be only enough to meet the firm's needs until 2019.
?We need additional gas supply to fullfill our long-term needs after 2019,? he said.
Mashudianto explained that PIM is getting a total of 8 cargoes of gas this from the Bontang LNG plant in East Kalimantan this year under a swap agreement between Bontang and the Arun LNG plant in Aceh; 12 cargoes from Tangguh LNG plant in Papua in 2010-2011, which were initially allocated for Sempra in Mexico. From 2012 beyond, the firm will get gas supply from Block A owned by a consortium led by Medco.
Elsewhere, Lukman Mahfoedz, the director of PT Medco Energi Internasional, said he doubted if PIM would be able to pay the Donggi-Senoro LNG at US$6.16 per million british thermal unit as offered by Japanese buyers. ?The price will be too expensive and it will not be economically feasible for PIM,? he said.
Donggi Senoro LNG had signed HoAs to sell the entire gas from the plant to Japanese firms Kansai Electric Power and Chubu Electric.
The project, however, is in the state of limbo after VP Jusuf Kalla decided that gas produced from the project must be sold to domestic market.
Kansai Electric, finally said it canceled plan to buy LNG from the project with Chubu is widely expected to follow suit. (godang)