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Donggi Senoro LNG signs LNG sales deal with Pertamina

Donggi Senoro LNG plant [Image: DSLNG}
Donggi Senoro LNG plant [Image: DSLNG}
JAKARTA (rambunergy.com) – PT Donggi Senoro LNG has  signed LNG Sales and Purchase Agreement (LNG SPA) with state owned oil and gas company PT Pertamina (Persero) to sell its first cargo production to be shipped to Arun Regasification and Receiving Terminal. Under the deal, Pertamina will buy 1 cargo of LNG (around 56,000 tons) of LNG which will be delivered during delivery window of July 25-August 25, 2015.

The LNG SPA was signed on Tuesday, 30th June 2015, in Jakarta, witnessed by Minister for Energy and Mineral Resources Sudirman Said. The agreement is part of DSLNG’s sales to domestic spot market.

“We are very proud that DSLNG Plant can deliver its first cargo to domestic consumer on top of its committed supply to long term contractual buyers,” said President Director of PT DSLNG Gusrizal.

According to the agreement, the first cargo from DS LNG plant will be delivered to spot market to Arun Regasification and Receiving Terminal in Lhok Seumawe, Nanggroe Aceh Darusalam. The estimated delivery time is around end of July 2015 to early August 2015 with some narrow down delivery windows as DSLNG plant is still in the ramp up stage and need more time to fix the delivery window.

DSLNG Plant has successfully entered the operation phase which was marked by the feed gas supply since early June 2015, after it is undergone a series of equipment test of the plant in safely manner.

On 24 June 2015, the plant starts producing LNG with supply gas from the JOB Pertamina Medco Tomori Sulawesi. The LNG Plant will start producing LNG gradually to match with the feed gas supply from upstream.

Earlier, DSLNG signed Gas Sales Agreements (GSA) with gas sellers with PT Pertamina Hulu Energi Tomori Sulawesi, PT Medco E&P Tomori Sulawesi and Tomori E&P Ltd [under a Joint Operating Body (JOB) of Pertamina-Medco E&P Tomori Sulawesi (PMTS)] and PT Pertamina Eksplorasi dan Produksi (EP) [under Matindok Gas Development Project (MGDP)].

Based on GSAs, the DSLNG LNG Plant will receive gas supply from Senoro-Toili Block operated by JOB PMTS totaling of 250 million cubic feet per day and from the Matindok Block, which is operated by  MGDP, totaling to 85 million cubic feet per day. Under separate agreements, the upstream parties will also supply gas for domestic users among others for ammonia plant and power plant

DSLNG has already signed LNG SPA with three contractual buyers for long term supply which are Chubu Electric, Kyushu Electric, and Korea Gas Corporation. The LNG shipment to those buyers will also start this year.

Donggi Senoro LNG plant, located at Banggai Regency, Central Sulawesi, is the fourth LNG plant in Indonesia. The project enables monetization on Central Sulawesi gas reserves which remained untapped for more than 30 years.

The Donggi Senoro LNG project is the first model under the downstream business scheme, which separates the gas production at the upstream and the liquefied natural gas processing at the downstream. The downstream business development allows optimization of state revenue because the LNG plant investment is not subject to cost recovery. (*)

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