Executive Agency for Upstream Oil and Gas (BP Migas) questioned the initial agreement HoA LNG sale and purchase of 500,000 tons per year of PT Energy Sengkang Plt. to Tokyo Gas for the year 2012.
Head of BP Migas R. Priyono revealed, it’s doubtful HoA. Agreement has no basis, both in terms of gas reserves and the Plan of Development (PoD) for the field Sengkang in South Sulawesi. BP Migas has yet to approve PoD Sengkang field due to the availability of gas reserves is still in doubt.
Energy World Corporation (EWC), the holding company of PT Energy Sengkang confirmed, it will build a LNG processing project in Sengkang with a capacity of 2 million tons per year. But the plan still awaits PoD approval from BP Migas, including the approval of the LNG sale and purchase.
Members of the House of Representatives Commission VII, Dito Ganindito said BP Migas doubt very reasonable. Avaibility gas field Sengkang has been spent to meet the needs of Gas Turbine Power Plant PLTG Sengkang. No more additional new gas can be produced. EWC party still lobbying for the same perception of the reserves in the field Sengkang. According to EWC there are about 4 to 5 TCF.
(Source: Investor Daily, March 25, 2010)