Prime Petroservices sees delay in mini-LNG project

LNG developer PT Prime Petroservices is in talks with several financial institutions and potential partners to get its mini LNG project to become onstream in 2011.

CEO Faiz Shahab said on Wednesday that the company is working to make financial closure by June 2009 to enable the company to complete the project in 2011. He also said the company is in talks to divest part of its stake in the project to potential partners.

According to Shahab, cancellation of IPO in 2008 due to global financial meltdown has caused the project schedule to be delayed by one-year as the company is trying to secure alternative financing for the project. The EPC contractor will need 22-24 months to bring the project onstream, he said.

Prime through its wholly-owned subsidiary PT.Indogas plans to supply some 300,000 tonnes per annum of LNG from Kangean Block, offshore East Java to power plants operated by PLN?s subsidiary PT. Indonesia Power in the tourist island of Bali, company official said on Monday.

Indogas willl build a mini LNG plant in Kangean PSC, offshore East Java with capacity of 300,000 TPA, or equivalent to 50MMCFD 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) under long-term contract.

Indogas needs to raise US$300 million to finance 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. (alex)