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Jakarta Post

LNG plant for Masela likely to produce 9.5 mtpa of gas: Minister

  • Fedina S. Sundaryani

    The Jakarta Post

Bogor, West Java   /   Fri, June 2, 2017   /   09:15 am
LNG plant for Masela likely to produce 9.5 mtpa of gas: Minister Energy and Mineral Resources Minister Ignasius Jonan, flanked by State-owned Enterprises Minister Rini Soemarno (right) and Energy and Mineral Resources Deputy Minister Archandra Tahar, attends a Cabinet meeting at the Presidential Office on Jan. 24. (Antara/Rosa Panggabean)

Energy 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 capacity of 9.5 million tons per annum (mtpa) and 150 million standard cubic feet per day (mmscfd). 

“Yes, it is most likely [that will be the capacity] but I have also asked them to conduct evaluations and a market survey to see whether it is possible, or not, to do 7.5 [mtpa] and 474 mmscfd,” he said following a plenary Cabinet meeting at the Bogor Palace in West Java.

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) to determine the production capacity of the onshore LNG plant and the buyers of piped gas.

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 is optimistic the block can start operating by 2023, the previous plan on development (POD) estimated that the gas field could start production by 2024, and start operating in 2026. 

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