Gas firm PT Donggi-Senoro LNG (DSLNG) and global advanced technology and services provider PT GE Oil and Gas Indonesia have signed an agreement for a contract worth '‚¬102 million (US$108 million) for the maintenance of the former'€™s liquefied natural gas (LNG) plant.

With a production capacity of 2 million tons of LNG per year, the Donggi Senoro plant is worth $2.8 billion of investment. The plant is located in Banggal regency, Central Sulawesi, and was constructed in 2011 before successfully entering the operation phase in June 2015. It delivered LNG cargo on Aug. 2 for both domestic and international markets.

DSLNG president director Gusrizal said the contract agreement to support the reliability and stability of the company'€™s plant performance was long term in nature as it reached approximately 18 years.

"Our main purpose is to ensure that the plant can perform well and is able to produce a reliable supply of LNG so that we can meet our commitments to deliver LNG to our buyers in line with the company'€™s mission," said Gusrizal at the signing ceremony in Jakarta on Monday.

He further explained that the scope of GE was to monitor and maintain existing equipment at sites and to supervise both GE and non-GE manufacturing activities, including personnel assignment, to guarantee the constant operation and reliability of the plant.

"We want to ensure there will be no hiccups related to technical issues in the operation of the plant in our efforts to meet our goal. Therefore, we appointed GE to support our LNG plant operation," Gusrizal said.

GE president director Iwan Chandra said the deal was a milestone for the company because under the terms of the agreement, GE would act as a single contractual supplier.

"The deal will also allow both companies to monitor the plant equipment in a single interface and identify issues before they become problems to ensure better reliability and safety," Iwan said.

By increasing engineering expertise and through extensive knowledge of big data analytics, Iwan said, the two companies had been able to create an integrated system that could optimize the flow and quality of information to plant operators.

"This is a huge step forward in terms of monitoring and diagnostic activities and it has the potential to unlock significant productivity gains," he added.

GE Asia Pacific general manager Visal Leng said the agreement was a watershed moment for the oil and gas sector, signaling greater future integration of service maintenance and industrial Internet application.

"The flagship project is immensely exciting for us both because it sees GE Oil and Gas employing its service offerings to serve and monitor the performance of machines manufactured by other companies," he said.

The Donggi Senoro project is the first model under the downstream business scheme, which separates gas production upstream and LNG processing downstream. The downstream business development allows optimization of state revenues as the LNG plant investment is not subject to cost recovery. The Donggi Senoro LNG plant is the fourth LNG plant in Indonesia. (ebf)

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