Shell Indonesia eyes Masela floating LNG plant

PT Shell Indonesia is exploring the possibility of taking part in the development of a floating Liquefied Natural Gas (LNG) in Masela in the Timor Sea which will be built and operated by Japan?s energy company Inpex Corporation, Bisnis Indonesia reported on Monday.

The company?s president Darwin Silalahi said in Jakarta last week that Shell Indonesia had signed a memorandum of understanding with state owned oil company PT Pertamina to take part in the development of the floating LNG plant in the Masela gas field.

?If there is a possibility, we will take part both in the development of the Masela gas block either in downstream or upstream operation,? he was quoted as saying by the daily.

Earlier, Pertamina said that it was interested in buying a 30 percent stake in the Masela gas block from Inpex, which had offered to sell part of its stake in the gas field which would cost about US$14 billion to develop.

The project would include a floating liquefied natural gas plant, which would have an annual production capacity of 4.5 million tons. The project is expected to start producing LNG in 2015-2016.

Inpex is currently waiting a final approval from the Indonesian government on the development of the Masela gas field and the floating LNG project. (*)