Indonesia clears plans for more feed-gas supplies for Bontang liquefaction plant amid other LNG developments

Wednesday, 18 January 2023
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Indonesia has approved a revised plan of development costing $3.35 billion for the Merakes and Merakes East natural gas fields to serve the nation’s main LNG export plant through to at least 2032.

The project fields are operated by Italian energy company Eni and one is already a supplier since April 2021 for the onshore Indonesian Bontang LNG plant in East Kalimantan province.

The Bontang plant has a nameplate capacity of 11.5 million tonnes per annum.

“The development of this field will provide additional reserves to ensure supply to the East Kalimantan system so that the Bontang LNG facility can operate at an optimal level,” said Dwi Soetjipto, the Chairman of the nation’s Upstream Regulator SKK Migas.

Investment for the Merakes fields was initially set at $1.3 billion with peak production at 368 million standard cubic feet per day.

Indonesia has two other onshore LNG facilities, the Tangguh plant with 7.6 MTPA and the Donggi-Senoro plant with 2.0 MTPA of output.

The Tangguh plant is operated by UK major BP and is currently undergoing an expansion with the construction of a third Train.

Tangguh began operations in West Papua province in 2009 and has delivered about 1,500 LNG cargoes to global markets.

Another Indonesian LNG project is expected to move forward soon with Japanese energy company Inpex Corp. finalizing its revised development plan for the Abadi project.

Inpex is planning to build an Asia-focused LNG export plant on Yamdena Island in the Tanimbar chain in a joint venture with Shell Plc using feed-gas from the Abadi gas field in the Masela Block of Indonesia's Arafura Sea.

The liquefaction and export plant could be expected to be operational by around 2028.

Inpex has already completed preliminary front-end engineering and design for a facility with projected annual initial capacity of 10.5 MTPA.

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