The development of the Masela Block liquefied natural gas or LNG jumbo refinery project in Tanimbar Islands, Maluku Province is still long. Besides being hampered by land issues, Inpex Corporation and Shell Indonesia as the operator have not yet succeeded in finding potential buyers of the liquefied natural gas product. Deputy of Finance and Monetization of SKK Migas, Arief Setiawan Handoko said the process of finding buyers is still long.
So far, there have only been letters of intent (LOL) and memorandums of understanding (MoU) with several parties who have mentioned the purchase volume, some have not, he said.
Previously, Inpex Masela Ltd had conducted an MoU of buying and selling gas from the Masela LNG project with PT PLN (Persero) and PT Pupuk Indonesia (Persero) in February.
The memorandum of understanding was intended to start discussions on sales and purchases to supply LNG gas to a gas power plant operated by PLN and natural gas of 150 million standard cubic feet per day (mmscfd) for the co-production refinery to be built by PT Pupuk Indonesia.
But Arief said the MoU had not yet discussed the price scale or product price calculations. Nevertheless, he ensured that SKK Migas continued to record potential buyers, both from the domestic and international markets.
SKK Migas is targeting the buyer search process to be completed in 2021. Buyer certainty will also have a positive impact on project sustainability.
In addition to the problem of gas buyers, previously Maluku Governor Murad Ismail has submitted a Governor Decree regarding the determination of the location of the Masela liquefied natural gas refinery port on Nustual Island, Lermatang Village, Tanimbar Selatan District, Tanimbar Islands Regency, Maluku Province, to SKK Migas.
SKK Migas Deputy for Operations Julius Wiratno said the area of the transferred land was still part of the required area.
"Much more is needed to fulfill the LNG refinery development project," he said.
Kontan, Page-12, Wednesday, June 3, 2020
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