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Publisher: Telephone: Managing Editor: Contributors: John Elkins Neisha Krastanoff Duncan Lawson Julie Mackintosh Jason O'Connell Obafemi Oredein Enrique Tessieri Kamlesh Trivedi Ben Wetherall Subscriptions: Matt Shelton
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| A monthly in-depth analysis on global gas issues and events. | |
| A bi-monthly review covering the global LNG midstream industry. | |
| A database service including statistics on European Supply Demand, Global LNG and country by country pricing. | |
| A market research service providing bespoke analysis on midstream and downstream natural gas developments. | |
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Friday 25th July 08 |
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South East Asia - LNG
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The three companies involved in Indonesia’s planned Senoro LNG project have reached an agreement on the price of the feedgas of the project, PT Pertamina's vice president Iin Arifin Takhyan said on Friday. The consortium’s two Indonesian members and owners of the reserves, Pertamina (29%) and Medco Energy (20%), have demanded an increase in price from the contracted level of $3.85/MMBtu, to one more reflective of higher oil prices. Mitsubishi, the operator and owner of 51% of the project, had resisted these demands. Whilst not disclosing the exact details of the agreement, Takhyan confirmed that the Japanese company had accepted an oil price link at around $10/MMBtu at $100/bbl. The agreement could pave the way for construction work to begin on the 2 mtpa plant in Sulawesi. The plant was originally expected to start operations in 2010, but Lukman Mahfoedz, director of Medco, has indicated that production is not expected to start until 2012. The consortium have estimated that the project will cost around $1.4 billion, but Indonesia’s upstream regulator, BPMigas has indicated that this may yet rise as the precise cost to sufficiently develop these two fields have not yet been finalised. The plant will buy gas from two gas fields: the Toili block, jointly owned by Pertamina and Medco, and the Donggi block, owned by Pertamina. – BW
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