Indonesia: Jakarta ponders over Donggi Senoro decision.
Yudhoyono calling Senoro shots
Indonesia’s President Susilo Bambang Yudhoyono is expected to call the shots on whether Donggi Senoro’s liquefied natural gas outputs will be exported.
Pertamina-Medco E&P Tomori Joint Operation Body spokesperson Abdul Rahman Susilo said the head of state will decide on the whether Senoro LNG will be exported or sold to domestic users.
Meanwhile, Pertamina-Medco E&P has gone ahead to explore and develop natural gas resources in Senoro-Toili Block, Susilo said.
"We are not affected with the absence of the decision now. We will continue to work for our production. Now we are going to lay down the pipeline networks,” he said.
Talks are also underway between upstream regulatory body BP Migas and state-owned power utility, Perusahaan Listrik Negara on a suitable gas price for Donggi Senoro outputs, he said.
Pertamina and Medco has previously agreed to sell 1 million tonnes of LNG from the Donggi-Senoro plant to Chubu Electric Power and 1 million tonnes to Kansai Electric. The contracts are due to run for 15 years.
The deal was on shaky ground after Jakarta reportedly signalled its preference to channel the outputs to meet local needs.
The Donggi-Senoro plant is due for start up in 2012 or 2013 and will draw gas from Senoro and Matindok gas fields in Central Sulawesi. The project is operated by Donggi Senoro LNG joint venture. Japan’s Mitsubishi Corporation holds 51% of the joint venture. Pertamina and Medco Energi own 29% and 20% stakes.