PT Perusahaan Gas Negara (PGN) signed an initial agreement to purchase up to 5 million metric tons of liquefied natural gas (LNG) per annum from Energy Equity Epic Sengkang Pty Ltd (EEES).
"PGN will receive between 1.5 and 5 million metric tons of LNG per annum *MTPA* from EEES. The LNG is expected to be delivered from 2012 as part of a five-year contract," PGN president director Hendi Prio Santoso said.
Hendi refused to divulge the contract's value, saying the pricing was one of the issues the two companies would finalize later.
Stewart Elliot, CEO of EEES's parent company Energy World Corporation Ltd, said EEES had produced a surplus of gas at its block in Sengkang, Central Sulawesi.The company was also planning to build an LNG plant, he added.
"We will build the LNG plant with a production capacity of 2 MTPA to begin with.
"We will then ramp up the capacity to 5 MTPA," he said.
Elliot added EEES would spend between US$400 million and $500 million to build the 2 MTPA plant.
EEES has been preparing for the plant's permit and putting together its component manufacturing.
"We expect the plant will start operating in 12 to 18 months from now," he added.
Hendi said the LNG would be supplied to PGN's LNG-receiving terminals it was planning to build in West Java and North Sumatra.
As has been reported earlier, PGN and state oil and gas company PT Pertamina have formed a consortium to build the two LNG-receiving terminals in those particular regions.
Sep 8, 2009
InterOil’s PNG LNG project seeks approval
Papua New Guinea’s second liquefied natural gas project is edging forward after Canadian independent InterOil and its joint venture partners submitted a project agreement to the government to build the proposed plant in Port Moresby.
InterOil said that both the Prime Minister of PNG, Michael Somare, as well as the Minister for Petroleum and Energy, William Duma, have stated their support for the proposed project and associated agreement.
The proposed project targets a $6 billion two train LNG facility, with each train capable of producing about 4 million tonnes of LNG per year. Current plans call for first production of LNG towards the end of 2014 or beginning of 2015.
At least 5000 jobs are expected to be created at peak construction of the InterOil facility. Economic returns from the project are expected to help fund public infrastructure and community services in Papua New Guinea, such as education and health, and provide income to land owners.
InterOil's partners in the project are Petromin PNG Holdings and Pacific LNG Operations.
InterOil said that both the Prime Minister of PNG, Michael Somare, as well as the Minister for Petroleum and Energy, William Duma, have stated their support for the proposed project and associated agreement.
The proposed project targets a $6 billion two train LNG facility, with each train capable of producing about 4 million tonnes of LNG per year. Current plans call for first production of LNG towards the end of 2014 or beginning of 2015.
At least 5000 jobs are expected to be created at peak construction of the InterOil facility. Economic returns from the project are expected to help fund public infrastructure and community services in Papua New Guinea, such as education and health, and provide income to land owners.
InterOil's partners in the project are Petromin PNG Holdings and Pacific LNG Operations.
Sep 7, 2009
Indonesia Tangguh begins trial at train 2
Indonesia's Energy Minister said trial runs at the second LNG train at the Tangguh project began last week and the first train would resume operations by the second week of October at the latest.
The Tangguh LNG plant in Papua, led by BP's Indonesian unit, started up this year but was temporarily shut in August to resolve technical problems.
"Second train commissioning started. Trial runs are on," the minister, Purnomo Yusgiantoro, told Reuters in an interview.
Indonesia's oil watchdog BPMIGAS said last week the LNG plant, which has a capacity to produce 7.6 million tonnes per year (tpy) via two trains, will ship only 16 cargoes of liquefied natural gas in 2009, well short of its previous estimate of 56 cargoes.
BPMIGAS monitors oil and gas firms operating in Indonesia.
Indonesia, the world's third-largest LNG exporter after Qatar and Malaysia, plans to use more natural gas at home to avoid costly oil prices as its own oil reserves dwindle.
Yusgiantoro said fertiliser customers had placed a request for 0.5 million tonnes of LNG from Donggi-Senoro project and the remaining 1.5 million tonnes was yet to be sold.
He said the promoters were still negotiating price and financing of the project.
The Donggi-Senoro project, which will require $1.7 billion for upstream activities and $2 billion for downstream, has been under threat since Vice President Jusuf Kalla said in June gas from the project should be sold to the domestic market.
Yusgiantoro said Indonesia, the world's largest thermal coal exporter, would export 150 million tonnes of coal annually from 2015. It exported 140.35 million tonnes of coal in 2008.
"We will increase it by 20 million tonnes to 30 million tonnes per year up to the level that it can be massively exported," Yusgiantoro said. Currently, Indonesia uses 40 percent of its output locally and exports the rest.
The Tangguh LNG plant in Papua, led by BP's Indonesian unit, started up this year but was temporarily shut in August to resolve technical problems.
"Second train commissioning started. Trial runs are on," the minister, Purnomo Yusgiantoro, told Reuters in an interview.
Indonesia's oil watchdog BPMIGAS said last week the LNG plant, which has a capacity to produce 7.6 million tonnes per year (tpy) via two trains, will ship only 16 cargoes of liquefied natural gas in 2009, well short of its previous estimate of 56 cargoes.
BPMIGAS monitors oil and gas firms operating in Indonesia.
Indonesia, the world's third-largest LNG exporter after Qatar and Malaysia, plans to use more natural gas at home to avoid costly oil prices as its own oil reserves dwindle.
Yusgiantoro said fertiliser customers had placed a request for 0.5 million tonnes of LNG from Donggi-Senoro project and the remaining 1.5 million tonnes was yet to be sold.
He said the promoters were still negotiating price and financing of the project.
The Donggi-Senoro project, which will require $1.7 billion for upstream activities and $2 billion for downstream, has been under threat since Vice President Jusuf Kalla said in June gas from the project should be sold to the domestic market.
Yusgiantoro said Indonesia, the world's largest thermal coal exporter, would export 150 million tonnes of coal annually from 2015. It exported 140.35 million tonnes of coal in 2008.
"We will increase it by 20 million tonnes to 30 million tonnes per year up to the level that it can be massively exported," Yusgiantoro said. Currently, Indonesia uses 40 percent of its output locally and exports the rest.
CNOOC Shanghai terminal to receive 1st LNG cargo
The Shanghai LNG project, a joint venture between CNOOC and Shenergy Group, is expected to receive its first cargo of liquefied natural gas (LNG) from Malaysia around Sept. 20, an industry source said.
The shipment would be about 80,000-90,000 cubic metres, the source said, adding that the fuel would be used later to test new facilities.
Previous imports from Malaysia were diverted to Wuhaogou, an existing small LNG terminal in the financial hub, which has two 50,000 cubic metre LNG tanks and one 20,000 cubic metre tank and serves as backup supplies for the city.
Wuhaogou is run by Shanghai Gas (Group) Co Ltd, a unit of Shenergy Group. The group controls Shenergy Company .
Under a long term contract, Malaysia's Petronas will supply 3.03 million tonnes of LNG a year to the new Shanghai terminal for 25 years starting from 2009.
China National Offshore Oil Corporation (CNOOC), parent of CNOOC Ltd, has one terminal in Guangdong and another in Fujian in operation.
The shipment would be about 80,000-90,000 cubic metres, the source said, adding that the fuel would be used later to test new facilities.
Previous imports from Malaysia were diverted to Wuhaogou, an existing small LNG terminal in the financial hub, which has two 50,000 cubic metre LNG tanks and one 20,000 cubic metre tank and serves as backup supplies for the city.
Wuhaogou is run by Shanghai Gas (Group) Co Ltd, a unit of Shenergy Group. The group controls Shenergy Company .
Under a long term contract, Malaysia's Petronas will supply 3.03 million tonnes of LNG a year to the new Shanghai terminal for 25 years starting from 2009.
China National Offshore Oil Corporation (CNOOC), parent of CNOOC Ltd, has one terminal in Guangdong and another in Fujian in operation.
Sep 6, 2009
Yemen LNG says to start producing in "coming weeks"
Yemen LNG expects to start production from its new gas liquefaction plant in the "coming weeks", the company's chief executive said.
The first cargo was originally scheduled to be exported in August, but start-up problems, including leaking valves and minor glitches, delayed first production.
"Well we are in the start-up phase at the moment, we are working very hard and should see (production) in the coming weeks," Joel Fort said.
"We are not yet producing LNG but we are flowing gas through the first LNG train at the moment."
The Total-led Yemen liquefied natural gas (LNG) project in Balhaf, is expected to help boost economic growth in the country to nearly 8 percent, almost double last year's gross domestic product.
Other investors in the project include U.S.-based Hunt Oil and Yemen Gas Co, which own 17.2 percent and 16.7 percent, respectively.
The project has the capacity to produce 6.7 million tonnes of LNG for export from the Gulf of Aden port of Balhaf.
At the end of 2008, Yemen held 17.3 trillion cubic feet (tcf) of proven natural gas reserves, according to the BP Statistical Review.
The first cargo was originally scheduled to be exported in August, but start-up problems, including leaking valves and minor glitches, delayed first production.
"Well we are in the start-up phase at the moment, we are working very hard and should see (production) in the coming weeks," Joel Fort said.
"We are not yet producing LNG but we are flowing gas through the first LNG train at the moment."
The Total-led Yemen liquefied natural gas (LNG) project in Balhaf, is expected to help boost economic growth in the country to nearly 8 percent, almost double last year's gross domestic product.
Other investors in the project include U.S.-based Hunt Oil and Yemen Gas Co, which own 17.2 percent and 16.7 percent, respectively.
The project has the capacity to produce 6.7 million tonnes of LNG for export from the Gulf of Aden port of Balhaf.
At the end of 2008, Yemen held 17.3 trillion cubic feet (tcf) of proven natural gas reserves, according to the BP Statistical Review.
Aug 27, 2009
Qatar to up LNG sale to India
Qatar's RasGas will raise liquefied natural gas (LNG) supplies to India by 50 percent from November, a top official at gas importer Petronet LNG said on Thursday, but that will still leave scope for spot purchases.
The booming economies of China and India have propped up the long-term outlook of LNG market, as demand from traditional buyers such as South Korea and Japan has eased due to the rise in alternative energy sources such as nuclear power and coal.
At present Petronet imports 5 million tonnes of LNG every year from RasGas under a long-term deal, and supplies were to be raised to 7.5 million tonnes from the last quarter of 2009.
"It is 100 percent. Certainly we will receive it from November," Chief Executive Officer P. Dasgupta told reporters.
"India is always going to be driven by supply and not by demand".
Despite the start in April of output from Reliance Industries' huge gas find in its D6 block, which will eventually double local output, India will still have a gas deficit.
"Contrary to our nervousness about D6 gas, in April-June, D6 gas coming in to the tune of almost 25-30 mmscmd (million cubic metres a day), we sold a record 98 trillion British thermal units (tBtu) compared to 78 tBtu year ago," Dasgupta said.
He said Petronet's 10 million tonne a year Dahej terminal in western India could regassify 160 cargoes per year, and the enhanced RasGas supplies would translate to 120 cargoes. Its short-term supply deal with BP will end next month.
In the June quarter, Petronet imported 4 spot cargoes and in September quarter it planned to import 6 parcels, with two scheduled for arrival in September. Dasgupta said the firm would import 5 spot LNG cargoes in October and November.
He said Petronet was also in talks with Indian explorer Oil and Natural Gas Corp to jointly acquire a stake in InterOil's LNG project in Papua New Guinea. The Canadian firm has said it was looking to sell a stake of up to 35 percent.
Earlier this month Petronet signed a deal with Exxon Mobil Corp to buy 1.5 million tonnes of LNG a year for 20 years from Australia's Gorgon project to be regassified at its upcoming Kochi terminal in south India from late-2014.
The booming economies of China and India have propped up the long-term outlook of LNG market, as demand from traditional buyers such as South Korea and Japan has eased due to the rise in alternative energy sources such as nuclear power and coal.
At present Petronet imports 5 million tonnes of LNG every year from RasGas under a long-term deal, and supplies were to be raised to 7.5 million tonnes from the last quarter of 2009.
"It is 100 percent. Certainly we will receive it from November," Chief Executive Officer P. Dasgupta told reporters.
"India is always going to be driven by supply and not by demand".
Despite the start in April of output from Reliance Industries' huge gas find in its D6 block, which will eventually double local output, India will still have a gas deficit.
"Contrary to our nervousness about D6 gas, in April-June, D6 gas coming in to the tune of almost 25-30 mmscmd (million cubic metres a day), we sold a record 98 trillion British thermal units (tBtu) compared to 78 tBtu year ago," Dasgupta said.
He said Petronet's 10 million tonne a year Dahej terminal in western India could regassify 160 cargoes per year, and the enhanced RasGas supplies would translate to 120 cargoes. Its short-term supply deal with BP will end next month.
In the June quarter, Petronet imported 4 spot cargoes and in September quarter it planned to import 6 parcels, with two scheduled for arrival in September. Dasgupta said the firm would import 5 spot LNG cargoes in October and November.
He said Petronet was also in talks with Indian explorer Oil and Natural Gas Corp to jointly acquire a stake in InterOil's LNG project in Papua New Guinea. The Canadian firm has said it was looking to sell a stake of up to 35 percent.
Earlier this month Petronet signed a deal with Exxon Mobil Corp to buy 1.5 million tonnes of LNG a year for 20 years from Australia's Gorgon project to be regassified at its upcoming Kochi terminal in south India from late-2014.
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