Genting indicates Kasuri block gas may not be processed into LNG
Friday, January 27 2017 - 05:27 AM WIB
Courtesy of Genting
Malaysia?s Genting Oil Kasuri Pte Ltd (GOKPL), operator of the Kasuri block in Papua Province, indicated that there is possibility the company will not convert gas output from the block into LNG.
?I can?t inform (yet) details about this issue because it?s still being discussed, and because the output may not be LNG,? said External Affairs Manager of GOKPL, Listriyanto to Petromindo.com on Thursday.
According to Listriyanto, the initial schedule for the Kasuri block to be onstream in the fourth quarter of 2019 can?t be ascertained as it would depend on the approved plan of development (POD).
?It is also still being discussed. There are a number of scenarios (of POD) proposed,? he said.
In December of last year, Genting proposed to upstream oil and gas authority SKK Migas to develop a 1 million-ton per annum floating LNG (FLNG) production facility to process gas from the block into LNG and export the output.
SKK Migas Public Relations Head Taslim Yunus told Petromindo.com earlier that the company wants to export the Kasuri block output as it could not sell the gas to a fertilizer plant to be built in the province as initially planned because the fertilizer plant will only start taking gas in 2020.
?The decision (for export and develop FLNG) was taken as Genting has been facing difficulties to market the gas from Kasuri block to fertilizer plant in Papua. The (fertilizer) plant can only start receiving gas in 2020. That?s why Genting has requested to be allowed to export LNG and to develop FLNG near the local port,? Taslim explained.
SKK Migas Deputy Chairman Zikrullah confirmed that the POD is currently being finalized, hopefully to be completed this month. He said that once the POD has been approved by the ministry, signing of the gas sales agreement will follow.
He added that gas output from the Kasuri block is proposed to be prioritized for a planned petrochemical project to be developed in Bintuni, West Papua. As has been previously reported, Germany?s Ferrostaal plans to build a US$1.5 billion petrochemical project in Bintuni.
Genting through subsidiary Genting Oil Kasuri Pte Ltd owns 100 percent of Kasuri. The firm has discovered gas reserves amounting to 1.8 tcf (P1), according to Director General of Oil and Gas IGN Wiratmaja Puja.
Editing by Reiner Simanjuntak