Donggi-Senoro Gas Exports

Padang ekspres net-The government gave the signal that the best policy options in using the gas produced from the region Donggi-Senoro, Central Sulawesi Province, is to export it as much as 70 percent and only 30 percent remaining for the country.

This composition was judged capable of meeting all the needs of the Central Sulawesi region, ranging from gas to fertilizer plants need to gas power plants.

"I think the composition of exports and 70 percent to 30 percent for domestic consumption is the most appropriate. This is sufficient to meet local needs, "said Coordinating Minister for Economic Hatta Rajasa in Jakarta, Friday (21 / 5).

According to Hatta, the government asserted that the sale price will be applied to gas-Senoro Donggi adjusted by the movement of Indonesian crude oil price (ICP).

At the time the world crude oil prices are at the level of 80 dollars, gas prices that have not been processed into LNG is in the range of six dollars per million british thermal unit (MMBTU).

Thus, standard setting gas price-Senoro Donggi be very similar with the Tangguh gas pricing is sold to China's.

Tangguh gas price is also pegged to the price of crude oil, but limited to a maximum 38 dollars per barrel. On the position of the oil price was the maximum gas price 3.36 dollars per MMBTU.

"If the new gas wells are removed from it is processed into LNG, the price will go much higher. So, it's totally different with the gas it sold to China, "said Hatta.

Previously, mining analysts mention Kurtubi, the composition of exports and 70 percent to 30 percent for domestic flights can only be done if the gas is high. As an illustration, the position of the selling price of crude oil on world markets 80 U.S. dollars per barrel, the price of LNG to 13.3 U.S. dollars per MMBTU.

National policy

Hatta emphasized that Indonesia has abundant natural gas stocks, one of which is likely to occur over supply (oversupplied) from the Mahakam block. The problem, Indonesia does not have the infrastructure to distribute gas to areas that require the highest gas. Previous policy was too late to anticipate high demand for gas in the country.

"From the gas balance sheet shows that the stock was abundant. Most important is the development of floating LNG receiving terminal (terminal floating container, and gas processing), "he said.

Floating LNG receiving terminals must be realized by implementing core company PT Pertamina and PT Perusahaan Gas Negara or PGN. Pertamina and PGN on 14 April 2010 to form a joint venture company PT Nusantara Regas, to build a LNG receiving terminal in West Java.

Fertilizer plant

Hatta said that several factors will be used as the basis of government decision-Senoro Donggi gas utilization, among others, construction of fertilizer plant in Senoro. The existence of this fertilizer plant became one of the basic that the gas produced from Donggi-Senoro will be used for domestic consumption.

"This fertilizer plant proposed bottom up (from the area). With the existence of this plant, gas use policy-Senoro Donggi combined between exports and domestic are important, he said.

Fertilizer plant in Senoro is one of the programs established by the government in the second phase of the revitalization of the fertilizer industry. Plant capacity is estimated at 1.155 million tonnes per year. This factory needs 91 million cubic feet of gas per day. (Oin/kompas cetak)

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