The Jakarta Post
Oil and gas giants Inpex and Royal Dutch Shell have kicked off the preliminary front-end engineering design (pre-FEED) for the development of an onshore liquefied natural gas (LNG) plant at the Masela block in Arafura Sea, which is expected to go on stream by 2027.
The government approved the plan to develop the LNG plant, which has a capacity of 9.5 million tons per annum (mtpa) and 150 million standard cubic feet per day (mmscfd) of gas, according to the Upstream Oil and Gas Regulatory Special Task Force (SKKMigas).
SKKMigas head Amien Sunaryadi said the pre-FEED would be crucial in determining the exact location of the onshore LNG plant and gas pipelines.
“We hope the pre-FEED can be completed in the middle of this year. The results of the pre-FEED will be used [by Inpex and Shell] to finish their plan of development [POD] for Masela before the end of this year,” Amien said on Friday in Jakarta.
“After the POD is completed, the two companies will conduct a FEED study before starting the construction process. Hence, Masela might only be able to start production in 2027.”
Inpex and Shell, which currently hold respective stakes of 65 and 35 percent in Masela, will see their contract at the block expire in 2028. The government, however, promised to give them a 20-year extension.
Masela is estimated to be able to produce 1,200 mmscfd of gas and 24,000 barrels of condensate per day for 24 years. (bbn)