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Donggi Senoro LNG awards long-term service contract to GE Indonesia

JAKARTA ( – PT Donggi-Senoro LNG (DSLN) has awarded a long-term service contract to PT GE Oil and Gas Indonesia to maintain its LNG plant equipment valued at EUR 102 million or approximately Rp1.5 trillion.

The Service Agreement Contract is a long term contract to support reliability and stability of the plant operation performance.

The work scope of GE Oil and Gas Indonesia is to monitor and maintain the existing equipment at the site, both GE and non-GE manufacturing, including the personnel assignment at the site to guarantee the constant and reliability of the plant operation.

“Our main purpose is to ensure the plant is well performed and able to produce LNG reliably so that we can meet our commitment to deliver LNG to our buyers aligned with the company’s mission,” Gusrizal, President Director of DSLNG, at the signing ceremony, in Jakarta, Monday (Nov 30).

“We want to ensure there will be no hiccups to operate the plant due to technical issues in order to meet our goal. Therefore, we appoint GE to support our LNG plant operation. GE is a reputable and reliable company which has advance technology. GE’s products and services are used by majority of LNG plant in the world which makes us confident to work with GE,” said Gusrizal.

Donggi Senoro LNG Plant, worth US$2.8 billion of investment, located at Banggai Regency of Central Sulawesi Province, has successfully entered the operation phase since June 2015 and delivered the LNG cargo starting on 2nd August 2015 for both domestic and international markets. The LNG plant has the capacity to produce two million ton per year of liquefied natural gas.

The LNG project is jointly developed by Indonesia’s state owned energy company PT Pertamina (Persero), privately owned oil and gas firm PT Medco Energi Internasional Tbk, Mitsubishi Corporation, and Korea Gas Corporation. PT DSLNG’s scope of business is to process natural gas to liquefied natural gas

DSLNG has entered into Gas Sales Agreements (GSA) with gas sellers of PT Pertamina Hulu Energi Tomori Sulawesi, PT Medco E&P Tomori Sulawesi and Tomori E&P Ltd. undera Joint Operating Body (JOB) of Pertamina-Medco E&P Tomori Sulawesi ( JOBPMTS)] 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 the Senoro-Toili Block operated by JOB PMEPTS amounting to 250 million cubic feet per day and from the Matindok Block, operated by MGDP, amounting to 85 million cubic feet per day. In addition, the upstream parties will also supply gas for domestic users among others for ammonia plant and power plant

In addition, DSLNG has entered into LNG SPA for long term supply with Chubu Electric, Kyushu Electric, and Korea Gas Corporation. The LNG shipments have been delivered to KOGAS and Kyushu, whilst for Chubu will be delivered by end of this year.

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

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