President inaugurates Donggi Senoro LNG first shipment, GG field
Monday, August 3 2015 - 01:02 AM WIB
The first cargo is delivered to Arun Receiving and Regasification Terminal in Nanggroe Aceh Darusalam to correspond the needs for industries and power plant in the northern part of Sumatera, PT Donggi Senoro LNG (DSLNG), the operator of the LNG plant, said in a statement.
The inauguration took place at Donggi Senoro LNG plant at Uso Village, Batui District, Banggai Regency, Central Sulawesi. The event is part of inauguration of Pertamina Integrated Mega Project with its business partners. The inaugurated projects, among others, are the Senoro Gas Field Production Facility of Joint Operating Body Pertamina Medco E&P Tomori Sulawesi (JOB PMTS), the First LNG Shipment of PT Donggi-Senoro LNG (DSLNG), Ground Breaking of Ammonia Plant of PT Panca Amara Utama, and Onstream GG Field of Pertamina Hulu Energi Offshore Northwest Java.
?The first LNG cargo with total volume of 125,000 M3 is part of DSLNG supply to domestic spot market. The agreement was signed on end of June 2015. DSLNG took 49 days from receiving the feed gas to the first cargo loading, Compared with the process in other LNG project with relatively similar scale, we are proud that DSLNG process is the shortest,? said Gusrizal, President Director of DSLNG.
The Integrated Mega Project was initiated by Pertamina and MedcoEnergi to monetize gas reserve through LNG project in Central Sulawesi since its discovery back 30 years ago. The project coverage includes the construction of upstream processing facilities namely Central Processing Plant by JOB PMTS and Matindok Gas Development by Pertamina EP, in addition to Donggi Senoro LNG Plant. The project development is also supported through participation of Mitsubishi Corporation and KOGAS. The total investment of the mega project through the LNG project reaches US$4.8 billion.
DSLNG Plant, worth $2.8 billion of investment has successfully entered the operation phase which was marked by the feed of gas supply since early June 2015, after it has undergone series of equipment test of the plant in safely manner. On June 24, 2015, the plant starts producing LNG with gas supply from the JOB PMTS. The LNG Plant will start producing LNG gradually to correspond to the feed of gas supply from upstream, the DSNLG statement explained.
DSLNG has entered into Gas Sales Agreements (GSA) with gas sellers of PT Pertamina Hulu Energi Tomori Sulawesi, PT Medco E&P Tomori Sulawesi and Tomori E&P Ltd. undera Joint Operating Body (JOB) of Pertamina-Medco E&P Tomori Sulawesi ( JOBPMTS)] and PT Pertamina Eksplorasi dan Produksi (EP) [under Matindok Gas Development Project (MGDP)].
Based on GSAs, the DSLNG LNG Plant will receive gas supply from the Senoro-Toili Block operated by JOB PMEPTS amounting to 250 million cubic feet per day and from the Matindok Block, operated by MGDP, amounting to 85 million cubic feet per day. In addition, the upstream parties will also supply gas for domestic users among others for ammonia plant and power plant.
Pertamina statement said that Matindok block will have to central processing plants, including CPP Donggi and CPP Mantindok with combined capacity of 105 mmscfd, absorbing total investment of $0.8 billion.
DSLNG said it has entered into LNG SPA for long term supply with Chubu Electric, Kyushu Electric, and Korea Gas Corporation. The LNG shipment to those buyers is also anticipated to start this year.
The Donggi Senoro LNG project is the first model under the downstream business scheme which separates the gas production at upstream and the liquefied natural gas processing at downstream. The downstream business development allows optimization of state revenue since the LNG plant investment is not subject to cost recovery. The Donggi Senoro LNG plant is the fourth LNG plant in Indonesia.
At its peak of construction phase, the project absorbed in total of 10,000 man power. Therefore, the presence of this Integrated Mega Project has made significant contribution to economic growth in Banggai Regency and Central Sulawesi Province.
In addition to the Central Sulawesi projects, the President also inaugurated the GG Field operated by PHE Offshore North West Java located in Indramayu Regency, West Java. The GG field has one offshore platform, three gas drilling facilities, a 35 km underwater pipeline, and onshore processing facility in Balongan, with combined investment of $150 million.
The GG field started on stream with production capacity of 31 mmscfd, and 150 barrels of condensate per day. Gas from the field is supplied to Pertamina?s Balongan refiney, Pertamina?s Mundu LPG refinery, and PLN Sunyaragi.
Editing by Reiner Simanjuntak