Thursday, August 24, 2006

Matindok LNG project so far, so so!

State-owned oil and gas company PT Pertamina (Persero) announced another plan yesterday on its long-delayed liquefied natural gas (LNG) project in Central Sulawesi with Matindok block at the center of it. But the project has been downsized significantly.

As reported by, Pertamina has two potential partners in the Matindok LNG project, Mitsubishi and Australia Energy. This week, Pertamina would announce the LNG buyers to confirm the project's kickoff. Buyer would be the key financing source for the project (capable to produce 2.5 million tones/year of LNG). Total investment would be US$600 million, of which Pertamina will contribute up to 20%.
The discovery of Donggi field, Matindok and Senoro in Central Sulawesi was initially considered giant with estimated reserves of 22 trillion cubic feet (TCF), lot bigger than Arun in Aceh. In January 2003, Pertamina's then president Baihaki Hakim announced what he called the milestone for the company of a plan to build two LNG trains with US$1.7 billion investment plus petrochemical complex and gas to liquid (GTL) plant in the area.
Months later, Pertamina decided to delay the marketing of the gas on after test wells showed less gas than estimated. But in June 2003, Pertamina and Sri Gas notified Rentech (associate company of Sri Gas) that it has third-party interest to funding 16,000 bpd GTL plant in Matindok.
Pertamina sends stronger signal of less gas reserves in November 2005 when then deputy president of Pertamina Mustiko Saleh admitted that Pertamina would build the LNG plant in Senoro with PT Medco Energi International Tbk. One LNG train only, Mustiko said that time, with Senoro field (Pertamina 50% and Medco 50%) and Matindok (Pertamina 100%) as the source of natural gas for the LNG plant. Combined reserves estimated in the three fields (Senoro, Matindok & Donggi) was 9.6 TCF.
So, what about the petrochemical complex and GTL project? No news so far.

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