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The Jakarta Post
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DKI Jakarta, Indonesia
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Work on Donggi-Senoro LNG plant ahead of schedule

  • The Jakarta Post

| Mon, February 6 2012 | 08:00 am

Publicly listed energy company PT Medco Energi Internasional (MEI) announced over the weekend that construction work on the Donggi-Senoro liquified natural gas (LNG) plant in Central Sulawesi was ahead of schedule.

The director for asset development at Medco EP, which is a subsidiary of MEI, Eka Satria, reported that work was 33 percent complete, which exceeded the target for this time of 26 percent. He said that given the current pace of the construction work, he hoped that the plant could complete its first LNG delivery in late 2014 as planned.

Medco owns an 11.1 percent stake in the LNG plant, while state-run oil and gas firm Pertamina, Mitsubishi and Korea Gas (Kogas) Corporation share the remaining 88.9 percent – with 29 percent, 44.9 percent and 15 percent stakes, respectively.

“Donggi-Senoro is the largest infrastructure project in Indonesia after the Tangguh LNG plant in Papua. This is the first LNG project whose players are all Asians,” he told reporters at a media gathering event in Tangerang, Banten.

The Donggi-Senoro LNG plant will have a total production capacity of 2.1 million tons per annum (mtpa), and will obtain its gas supply from the Senoro and Matindok gas blocks.

A million tons of LNG will be sent to Chubu Electric in Japan, 700,000 tons to Kogas and 300,000 tons to Kyushu Electric Power in Japan. The delivery contracts for the three companies last for 13 years.

The Donggi Senoro plant will be the fourth LNG plant in Indonesia after Arun in Aceh, Bontang in East Kalimantan and Tangguh in Papua. The total investment required for the plant is estimated to hit US$2.8 billion.

The plant will be equipped with an LNG storage tank with a capacity of 170,000 cubic meters of gas, an LNG liquefaction train with a capacity of 2 mtpa, a jetty and a gas turbine generator with an output of 3x22.6 megawatts.

Eka also said in March the company would also announce the winner of the tender process for the construction of production facilities at the Senoro gas block, which would supply 250 million standard cubic feet of gas per day (mmscfd) to the Donggi-Senoro LNG plant, in March.

“Four consortiums have passed the final phase of the tender. They are IKPT and Petrofac, Adhi Karya and Hyundai, Tripatra and Samsung, and Rekaya Industri and Daewoo,” he said.

In the block, Medco holds a total share of 30 percent. Pertamina EP holds a 50 percent stake, and Mitsubishi a 20 percent stake.

—JP/ Rangga D. Fadillah

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