JAKARTA (TheInsiderStories) - Private energy firm PT Donggi Senoro LNG plant (DSLNG), unit of national energy company PT Pertamina and PT Medco Energi Internasional Tbk (IDX: MEDC) reported the refinery in Central Sulawesi is projected to produce 2.2 million tons of the planned 2 million tonnes of LNG.
“There is the additional production with the inclusion of the CPP Donggi gas supply. Besides the refinery to operate normally throughout the year with a good safety record, “explained the Director of Corporate Affairs Aditya Mandala in a press statement.
He continued, DSLNG has secured buyers for 31 cargoes of LNG it plans to export from the plant will produce 40 cargoes in 2017.
Refinery DSLNG receive gas supply from Pertamina JOB Tomori Sulawesi and Pertamina EP Matindok Gas Development. As from April 2016, the supply of gas from Central Processing Plant (CPP) Donggi-owned Pertamina EP began to flow so that the average volume of gas processed at the refinery DSLNG MMSCFD to 355 MMSCFD of 335 plans.
Aditya adds that the Donggi Senoro can maintain stable operation in the midst of declining oil prices and excess supply of LNG. In the period January to November 2016, the refinery successfully deliver the cargo to domestic consumers amidst domestic supplies LNG producer surplus.
The DSLNG plant is located in the Banggai Regency in the Province of Central Sulawesi and is situated about 45 km south-east of Luwuk, the main town of Banggai Regency. The plant site comprises about 100 hectares of land along the coast facing the Peling Strait, which provides a deep-sea route from Surabaya and Makassar to Luwuk and Manado.
DSLNG was established as a foreign investment company on 2007, with shares owned by Pertamina Energy Services Pte. Ltd. (29%), PT Medco LNG Indonesia (20%), and Mitsubishi Corporation (51%). Since February 2011, however, the ownership structure has changed to PT Pertamina Hulu Energi (29%), PT Medco LNG Indonesia (11.1%) and Sulawesi LNG Development Ltd. (59.9%).
DSLNG is the first Indonesian LNG project developed as a “downstream business activity” based on Law No. 22 of 2001, which enables separate development of upstream (feedstock gas supply) and downstream (LNG manufacturing) businesses.
A downstream LNG development model benefits the country as it shifts the investment and the associated risks of the LNG plant development from the Government of Indonesia to a downstream company.