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Jakarta Post

GE wants slice of Masela’s pie

  • Viriya P. Singgih

    The Jakarta Post

Jakarta   /   Wed, May 10, 2017   /   04:55 pm
GE wants slice of Masela’s pie Presidential Staff deputy for management and control of national prioritized programs Darmawan Prasodjo (right) speaks at a discussion together with House of Representatives Commission II member overseeing mining issues, Mercy Barends (center), in Jakarta on May 8. (JP/Viriya P. Singgih)

GE Oil & Gas Indonesia, a local subsidiary of the global advanced technology and services provider GE Oil & Gas, aims to supply the components needed for the development of a liquefied natural gas (LNG) plant at the gas-rich Masela block in Maluku.

In September last year, the United States-based company won a contract from British oil giant BP to provide the liquefaction components for the third train of the Tangguh LNG project in West Papua, expected to supply 3.8 million tons per annum (mtpa) of LNG.

“After the Tangguh project, our target is Masela,” GE Oil & Gas Indonesia president director Iwan Chandra said Tuesday during a discussion in Jakarta.

(Read also: Decision on Masela plan will impact other giant gas projects)

“However, we don’t know yet for sure because there will be a tender first [for the project].”

The government has asked Japan-based Inpex and Dutch Shell, which hold 65 and 35 percent stakes in the block, respectively, to conduct a preliminary front-end engineering design (pre-FEED) to determine the production capacity of the onshore LNG plant at Masela block and the buyers of piped gas.

The government has given the companies two options on the LNG plant capacity: 7.5 mtpa with 474 million standard cubic feet of gas per day (mmscfd) or 9.5 mtpa and 160 mmscfd. The piped gas will 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. (bbn)