Prime Petroservices plans mini-LNG plant in Kangean PSC

PT Prime Petroservices through its subsidiary PT. Indogas Kriya Dwiguna plans to supply some 300,000 tonnes per annum of liquefiad natural gas (LNG) from Kangean Block, offshore East Java to three power plants operated by PLN?s subsidiary PT. Indonesia Power in the tourist island of Bali, company official said on Monday.

CEO Faiz Shahab told reporters that the company would build a mini LNG plant in Kangean PSC and an LNG receiving terminal in Pesanggaran, Bali, from which the gas would be piped to Pesanggaran power plant (113MW), Gilimanuk power plant (130 MW) and Pemaron power plant (90 MW).

Shahab told reporters that the LNG would be supplied to Indonesia Power under long-term contract until 2026 worth more than US$1 billion.

Shahab said mini LNG plant in Kangean and receiving terminal in Bali would be completed in 2010.

The mini-LNG plant would have the capacity of 300,000 tonnes per annum or equivalent to 50MMCFD, he said, adding that the company expected to spend some US$300 million to build the plant. Shahab said that currently four EPC contractors have expressed interest to develop the project.

Indogas in 2007 has secured gas supply from Kangean PSC from 2010 until 2028. Under the GSA, Indo Gas would buy gas from Kangean?s Terang, Sirasun and Batur gas fields at US$4.09 per MMBTU.

IDX-listed oil, gas firm PT.Energi Mega Persada has 50 percent indirect interest in Kangean PSC through Kangean Energi Indonesia with Japanese firms Japex and Mitsubishi holding the balance. (Godang)