FACTBOX-Indonesia LNG plants, projects
2009-07-06 06:08 (UTC)
JAKARTA, July 6 (Reuters) - Indonesia, the world's third-biggest liquefied natural gas (LNG) exporter, has dispatched its first shipment from Tangguh in Papua, a project it hopes will offset falling output in other ageing fields.
The first cargo from BP-led Tangguh is due to go to POSCO's LNG terminal in Gwangyang, South Korea, energy watchdog BPMIGAS said in a statement.
The gas came from Tangguh's first LNG train, while the second train is expected to start operating this quarter, BPMIGAS said.
The global economic crisis has pushed down LNG demand around the world and means that Indonesia, which is behind Qatar and Malaysia as an exporter, should have more available to supply, particularly with the Tangguh project coming on stream.
In the past, Jakarta has sometimes failed to meet its contractual commitments to traditional markets such as Japan, South Korea and Taiwan, often agreed more than a decade ago, as it has sought to switch more supply to the domestic market.
Here is an outline of Indonesia's LNG industry and upcoming gas projects:
Existing plants:
BONTANG - LNG production began at the Bontang plant in East Kalimantan in 1977. Bontang, one of the largest plants in the world, has 8 trains and a capacity of 22 million tonnes a year (tpy), but output has declined due to a lack of available natural gas. Vico Indonesia, jointly owned by BP, Italy's Eni , Chevron and Total, supplies gas to Bontang. The plant is expected to produce about 17.2 million tonnes in 2009, down from 17.7 million in 2008.
ARUN - Indonesia also launched LNG production at its Arun complex in Aceh province in 1977, with 6 trains and a capacity of around 12 million tpy. Since 2000, LNG production at Arun has fallen as natural gas supplied by Exxon Mobil declines. Arun is expected to produce 2.3 million tonnes of LNG in 2009, about the same in 2008.
TANGGUH - The BP-led project is the country's third LNG centre with a capacity to produce 7.6 million tpy through 2 trains. Tangguh has several foreign supply contracts, including a 2.6 million tpy contract with China National Offshore Oil Corp (CNOOC). U.S. firm Sempra Energy also has a 20-year contract to lift 3.6 million tpy with the right to divert half to customers other than its own terminal in Mexico. There are also supply contracts with South Korean firms K-Power and POSCO.
Planned projects:
KUTAI BASIN - Chevron Corp is due to decide whether to move to final design on the Kutai Basin natural gas project off East Kalimantan by the end of 2009 and a final investment decision is likely in 2011. The Makassar Strait project would have the deepest offshore gas fields in Indonesia, at depths ranging from 2,500 to 6,000 feet (760-1,800 metres). Chevron had said it plans an investment of about $6 billion in the fields, which have combined natural gas reserves estimated at over 3 trillion cubic feet (tcf). Indonesia's energy minister said the project had agreed to supply up to 25 percent of gas to domestic users, which could provide 0.7-0.8 million tonnes of LNG a year. Some of the gas from Kutai will also be supplied to Bontang.
MASELA - Indonesia is considering building an onshore LNG plant for natural gas reserves from the Timor Sea, energy minister Purnomo Yusgiantoro said. Japan's Inpex Corp, which is the operator of the Abadi field in the Masela block, had earlier proposed building a floating LNG plant, which the oil watchdog had estimated would cost $19.6 billion. The field is estimated to have more than 10 trillion cubic feet of natural gas reserves and is expected to be on stream in 2016.
NATUNA D-ALPHA - Indonesia's state energy firm Pertamina expects the Natuna Sea natural gas project to come onstream in the next 8-9 years. The Natuna D-Alpha block, which has about 222 trillion cubic feet (tcf) of gas reserves and will require about $40 billion investment, is the subject of a dispute between Exxon Mobil and the government. Indonesia said last year it had awarded Pertamina the operating right, but Exxon has said its contract is valid until 2009. Pertamina does not have the technical expertise or financing to develop the project alone and has named eight firms -- Petronas, Exxon Mobil, Chevron, Total, Royal Dutch Shell, StatoilHydro, Eni and China National Petroleum Corp -- as potential partners.
DONGGI-SENORO - Pertamina, Indonesian energy firm Medco and Japan's Mitsubishi Corp. have agreed to build the $1.4 billion Donggi-Senoro LNG plant in Sulawesi, with a capacity of 2 million tonnes per year. It will receive natural gas supplies from Pertamina and Medco. The government, Pertamina and Medco are still in negotiations reviewing the natural gas price to the plant, which is expected to be operational in 2012 or 2013. http://www.xe.com/news/2009-07-06%2002:08:00.0/530345.htm?c=3&t=108
Tangguh LNG
Tangguh LNG is the third LNG hub in Indonesia. In March 2005 the Government of Indonesia gave the go ahead for the Tangguh LNG project in Bintuni Bay of West Papua.
Taking its name from the Indonesia word for "resilient and strong", Tangguh is centered on the Bintuni Bay area of Papua, Indonesia - around seven hours flight from Jakarta. With 37.16% interest in the project, BP Indonesia is the operator of Tangguh under a production sharing contract with BPMIGAS (Indonesia's regulatory body for oil and gas upstream activities).
In October 2007 the project completed its planned loan agreement totaling US$3.5 billion with several international banks to finance the development of the LNG plant. The external financing highlights investors' confidence in the project.
Project location and dimensions
The Project involves the tapping of six fields to extract combined proven reserves of around 14.4 trillion cubic feet of clean gas. Two normally unmanned offshore production platforms located in Bintuni Bay will collect gas from the reservoir, then send it through sub-sea pipelines to an LNG processing facility on the south shore. From here, LNG will go to energy markets using LNG tankers.
Enlarge imaged
The LNG processing plant will initially consist of two ‘trains’ (the units that purify and liquefy gas), producing at least 7.6 million metric tons of LNG a year. Other facilities at the site includes storage tanks, an LNG tanker loading terminal, as well as maintenance facilities, offices and a personnel accommodation complex.
LNG sales and future expansion
The Tangguh LNG plant has already secured long term LNG sales to four customers. It will deliver LNG to the Fujian LNG project in China, K-Power Co., Ltd in Korea, POSCO in Korea and Sempra Energy LNG Marketing Corp. in Mexico. Over time, plant capacity may be expanded to support new sales commitment.
Sustainable development
The Tangguh LNG Project provides an innovative approach to sustainable development, cultural preservation and biodiversity conservation. From the outset, this huge undertaking has been designed and implemented with a number of key principles in mind: community, partnership, consultation and corporate responsibility.
http://www.bp.com/sectiongenericarticle.do?categoryId=9004779&contentId=7008759
INDONESIA LNG SNAPSHOT
GLOBAL LNG APEC/GTI
Indonesia LNG Snapshot Startup / Original Capacity / Add-On Capacity (1) (2) / Total WorkingOriginal/
Add-On / Nameplate
(MTA) / Working
(MTA) / Nameplate
(MTA) / Working
(MTA) / Capacity 2002
(MTA) (3)
Bontang:
1977
original/new trains:
2/1983;
1/1989;
1/1993;
1/1997;
1/2000 / ‘A-B’ – 2 x 2.15 / 2 x 2 .60 / ‘C-D’ - 2 x 2.15
‘E-F’- 2 x 2.30;
‘G’-2.60
‘H’- 3.00 / 17.6
(‘C-D’– 2 x 2.3;
‘E-F’-2 x 2.5;
‘G’-2.9,
‘H’- 3.3)
Trains ‘A-B’ debottleneck to
3.2 each / 22.2
Aceh:
1978 – 3 original/new trains
2/1983-4
1/1986 / 3 x 1.50 / 3 x 1.70 / 3 x 1.50 / # 1-3 Debottleneck increases each train to 2.9
#4-6: Debottleneck – increases each train to 3.5
Train Closures
4/2001:
#2 mothballed
cuts 2.9;
#6 mothballed
cuts 3.50 / 12.8
TOTAL / 35.0
2P Reserves / Production (Export)
Gas
(TCF) (4) / Condensate
(million BBLS) (5) / Gas
(million CF/day) (6) / Condensate
(MBD) (7) / Major Production Fields (8)
National: 134.1
Bontang: 24..8
Arun: 5.6 / 620
345
30 / 6,804
2,841
694;
(3,381) / 108
78
12
(54) / Bontang: Sanga Sanga, Offshore Mahakam, East Kalimantan PSCs (includes Badak, Nilam, Tunu, Tambora, Sisi, Nubi, NW Peciko, Semanlu gas fields and associated gas from Handil, Attaka, Bekapai);
Arun: North Sumatra 'B' Block (single, giant gas field), NSO Block – (A, J1, J2 gas fields)
Initial Cost / Roughly $1.2-1.5 billion each for Bontang and Aceh on two trains and three trains, respectively. Further LNG investment since 1980 more than $10 billion.
Ownership Upstream / Bontang supplied by Offshore Mahakam PSC (50% Total, 50% Inpex), Sanga Sanga PSC (23.13% Vico, 26.25% ENI (ex-Lasmo), 26.25% BP, 20% CPC Taiwan, 4.37% Universe Gas and Oil (Osaka Gas) and East Kalimantan PSC (100% Unocal).
Aceh 100% ExxonMobil North Sumatra PSC (of which Pertamina takes 70% of output)
Ownership Downstream (9) / P.T. Badak NGL Co. at Bontang (55% Pertamina, 20% Vico, 15% Japan Indonesia LNG Co.); P.T. Arun NGL Co. at Aceh (55% Pertamina, 30% ExxonMobil and 15% Japan Indonesia LNG Co.
CONT'D NEXT PAGE
http://www.apecconsulting.com/PDF/WebIndonLNGSnapshot.pdf
Indonesia plans Floating LNG terminal in N. Sumatra
Tue, Mar 31, 2009 | News
Indonesia plans LNG floating receiving terminal in N. Sumatra
JAKARTA, March 30 (Reuters) - Indonesia plans to build a liquefied natural gas (LNG) floating receiving terminal in North Sumatra to secure natural gas supplies for a power plant in the area, the mines and energy minister said on Monday.
Indonesia is seeking alternative sources of energy such as natural gas and coal to meet rising domestic demand for power and to reduce consumption of crude oil as its reserves dwindle. The new LNG terminal would supply state electricity firm PT Perusahaan Listrik Negara (PLN).
As the world’s number three LNG exporter after Qatar and Malaysia, it has in the past failed to meet its contractual commitments to traditional markets such as Japan, South Korea and Taiwan, often agreed more than a decade ago, as it seeks to switch more supply to the domestic market.
‘PLN badly needs more gas supply for its power plant in North Sumatra. We will anticipate by building an LNG floating receiving terminal there,’ Purnomo Yusgiantoro told reporters.
Yusgiantoro said he has asked state gas firm, PT Perusahaan Gas Negara Tbk (PGN), to build the terminal.
PGN’s president director Hendi Prio Santoso said the terminal is expected to have a capacity of around 150 million cubic feet of gas per day. He did not give a figure for the investment required.
‘Building floating LNG receiving terminal is quicker compared with gas pipeline. We will talk to BPMIGAS to see how we will get the LNG for this terminal,’ Santoso said.
http://www.lngpedia.com/indonesia-plans-lng-floating-receiving-terminal-in-n-sumatra/
Indonesia's LNG terminal faces delays
By Upstream staff
The construction of Indonesia's first liquified natural gas receiving terminal may be delayed by funding woes and differences over plant specifications, a senior official of state power company PT Perusahaan Listrik Negara (PLN) said today.
A consortium of PLN, PT Perusahaan Gas Negara (PGN) and state oil company Pertamina initially planned to build the 3-million-tonnes per year LNG receiving terminal whose construction was expected to be completed in 2012 or 2013.
A PGN official has been previously quoted by the Bisnis Indonesia daily as saying the alternatives were to build a mini terminal with an annual capacity of 1.5 million tonnes or a floating terminal with capacity of 1 million tonnes a year.
PLN needs the LNG receiving terminal to secure gas supply for its gas-fired power plants, especially on the island of Java.
Indonesia, now the world's number-three LNG exporter after Qatar and Malaysia, is boosting use of energy sources such as natural gas to reduce oil use because of high prices and dwindling domestic supply.
"PLN want the consortium to stick with the original plan to build the LNG terminal on land in West Java," Reuters quoted Fahmi Mochtar, the company's president director, as telling reporters.
"If the consortium changes the original plan then PLN will not join the project."
Indonesia's Bontang LNG plant, in East Kalimantan, has pledged to supply the domestic LNG receiving terminal with 1.5 million tonnes annually.
Indonesia is also set to supply some of the LNG from its Tangguh plant in Papua to the domestic market. Indonesia is counting on BP-led Tangguh to help offset declining production at older projects.
It has far more gas than oil but has limited supplies for its own use due to long-term LNG export commitments, which it is reviewing.
Wednesday, 17 December, 2008, 10:33 GMT | last updated: Wednesday, 17 December, 2008, 10:44 GMT
http://www.upstreamonline.com/live/article168395.ece
ENERGY NEWS
INDONESIA: TROUBLES IN INDONESIA'S LNG INDUSTRY
Ø Declining production and the GOI’s January 2005 decision to defer and cancel 51 liquefied natural gas (LNG) cargos this year are the most visible signs of trouble in Indonesia’s LNG industry.
Ø LNG producers and buyers are concerned that poor policy and weak government management threaten Indonesia’s competitiveness.
Ø Protracted negotiations between the GOI and a BP consortium to develop a third LNG center at Tangguh will delay new LNG production until 2008.
Ø Despite abundant natural gas reserves, Indonesia will very likely continue to lose world market share and LNG revenue.
Ø The industry wants the GOI to strengthen LNG governance and revise
or clarify key regulations to improve the health of the sector.
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Background
Indonesia began LNG production in 1977 and is the world’s first and largest LNG producer. Output dropped by 3.5 percent in 2004 to about 25.5 million tons (MT), down from a peak of 28.9 million tons in 1999. The country has two LNG centers – PT Arun in Aceh province and PT Badak at Bontang in East Kalimantan province. ExxonMobil (EM) provides onshore and offshore natural gas for LNG at Arun, a six-train facility with a production capacity of 12.8 million tons per annum (mtpa). French Total, Anglo-Italian joint venture VICO Indonesia and U.S. Unocal provide natural gas from onshore and offshore fields for LNG production at the PT Badak plant in Bontang, an eight-train facility with a production capacity of 21.63 mtpa. A third (two-train, 7 mtpa) LNG production center at Tangguh in West Papua, operated by Anglo-American BP, with significant Chinese and Japanese shareholdings, should come on line in 2008.