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Jakarta Post

Masela production capacity most likely 9.5 mtpa: Minister

Fedina S. Sundaryani (The Jakarta Post)
Jakarta
Tue, May 30, 2017

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Masela production capacity most likely 9.5 mtpa: Minister Energy and Mineral Resources Minister Ignasius Jonan (left) and his deputy, Arcandra Tahar (right), attend a hearing at the House of Representatives. (Antara/Agung Rajasa)

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nergy and Mineral Resources Minister Ignasius Jonan has said the onshore liquefied natural gas (LNG) plant for the gas-rich Masela block will most likely have a production capacity of 9.5 million tons per annum (mtpa) and 150 million standard cubic feet per day (mmscfd).

The government has asked Japan-based Inpex and Dutch Shell, which hold a 65 and 35 percent stake in the block, respectively, to conduct a single phase pre-front end engineering design (pre-FEED) in order to determine the production capacity of the onshore LNG plant and the buyers of piped gas, Jonan said after a Cabinet meeting at the Bogor Palace in West Java

(Read also: Inpex to start works for Masela plan)

The piped gas is expected to be sold to local petrochemical companies.

The gas-rich Masela block is estimated to be able to produce 1,200 mmscfd and 24,000 barrels of condensate per day for 24 years.

While the government believes the block can start operating by 2023, the previous plan on development estimated that it could start production by 2024, and start operating in 2026, just two years shy of Inpex and Shell’s contract expiration.

The government has promised to amend their contract with an additional seven years. Furthermore, the government will strongly consider Inpex’s request for a cost recovery worth $1.2 billion following an audit.  (bbn)

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