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Indonesia's Donggi Senoro may start LNG deliveries in mid-2015

Increase font size  Decrease font size Date:2014-10-09   Views:519
Indonesia's Donggi Senoro LNG is expected to deliver its first LNG cargo in mid-2015, with the start of gas supply to the 2 million mt/year LNG plant in the first half of 2015, a senior company official said Wednesday.

And supply from the Senoro gas field to the plant will be ramped up to its full committed volume of 250,000 Mcf/d by the middle of next year, Donggi Senoro LNG president director Gusrizal told reporters on the sidelines of the inauguration of ExxonMobil's Banyu Urip oil field.

"The [LNG] deliveries are about three cargoes a month, but we make an annual delivery program. The delivery volume will be based on that," Gusrizal said.

Previously, Donggi Senoro LNG, or DSLNG, expected to ship its first cargo in Q1 2015.

DSLNG has agreed to sell 300,000 mt/year and 1 million mt/year of its LNG output to Japanese utilities Kyushu Electric and Chubu Electric, respectively.

It will also supply South Korea's Korea Gas Corp., or Kogas, with 700,000 mt/year, Platts reported previously.

The plant is expected to ramp up to full production once total required feed gas from its two main joint venture partners, Pertamina Hulu Energi and Medco E&P, is available.

Pertamina Hulu Energi and Medco E&P will supply 250,000 Mcf/day from the Senoro field.

Another 85,000 Mcf/d will be delivered from Pertamina EP's Matindok block in two phases.

First-phase delivery is expected by December 2015, with full volume to be supplied from March 2016, according to Gusrizal.

Separately, Medco Energi Internasional's president director Lukman Mahfoedz said construction of the LNG plant is 99.7% complete.

"The project has been in commissioning stage since September 28," Mahfoedz said, adding that the commissioning period will take six months.

Medco and Pertamina are still carrying out exploration in the Tomori field at Senoro-Toili block in a bid to boost their production.

The block is estimated to contain 1 Tcf of gas, according to Mahfoedz.

"We have allocated $70 million to carry out exploration in Tomori. It is expected to complete at the end of 2014. After that we will study whether it is economically viable or not," Mahfoedz said.

DSLNG is owned by Pertamina Hulu Energi (29%), Medco LNG Indonesia (11.1%) and Sulawesi LNG Development Ltd. (59.9%).

Sulawesi LNG Development itself is held by Japan's Mitsubishi Corporation (75%) and Kogas (25%).

The $2.8 billion DSLNG plant is the first Indonesian LNG project developed as a "downstream business activity" based on Indonesia's oil and gas law, which enables separate development of upstream (feedstock gas supply) and downstream (LNG manufacturing) businesses.
 
 
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