Donggi-Senoro LNG Project, Indonesia
The Donggi-Senoro LNG project involves the construction of a natural gas liquefaction plant near Luwuk in Central Sulawesi province, Indonesia.
The new plant will have a capacity of two million tons of LNG and associated condensate a year.
The project is being executed by Donggi-Senoro LNG. Construction of the plant is already underway and is expected to be completed by the fourth quarter of 2014. Total investment on the project is estimated at $2.8bn. By January 2013, about 70% of the downstream construction work of the LNG project was completed.
Indonesia is estimated to hold the biggest natural gas reserves in Asia and is the world's third biggest exporter of LNG. Gas production, however, has been on the decline due to maturation of the existing gas fields.
The new plant is expected to boost LNG production rates in Indonesia. It will be the country's fourth LNG facility.
The new plant will consist of a single LNG processing train and use Air Products' multi-component refrigerant LNG process technology to liquefy natural gas.
In this process, natural gas is pre-cooled with propane before it enters the main cryogenic heat exchanger. The natural gas is again cooled in the multi-component refrigerant cryogenic, and liquefied using a mixture of nitrogen and light hydrocarbons such as methane and ethane.
Natural gas for the plant will be supplied by the Senoro-Toili field (250 billion cubic feet of gas a day) and Matindok field (85 billion cubic feet of gas a day) in Central Sulawesi.
The Senoro field is operated by Pertamina Energy Services and Medco LNG Indonesia. The Matindok field is operated by Pertamina.
The LNG project involves companies from three countries: Japan, Korea and Indonesia. Donggi-Senoro LNG was established as a joint venture between Mitsubishi Corporation, Pertamina and Medco in December 2007. The final investment decision on the project was taken by the partners in January 2011.
Following the decision, Mitsubishi established a special purpose vehicle called Sulawesi LNG Development, in which it holds 75% interest. Korea Gas Corporation, which became a partner in the project in 2011, holds the remaining 25% interest.
Mitsubishi and Korea Gas Corporation, through Sulawesi LNG Development, hold 59.9% interest in Donggi-Senoro LNG. Pertamina holds 29% and Medco holds 11.1% in the project.
Mitsubishi will be the majority stakeholder in the project and will play a key role in the initial stages of its development. In January 2011 Mitsubishi acquired 20% interest in the Senoro-Toili field for $260m. The acquisition was made to improve both its upstream and downstream businesses.
Pertamina is expected to invest $812m in the new plant and $300m in developing the Senoro field. It will invest an additional $275m in the development of the Matindok field.
Medco will invest $310.8m in the construction of the new plant and $300m in the development of the Senoro field.
The Bontang LNG plant, operated by PT Badak in East Kalimantan, Bontang, Indonesia, processes the gas from a huge reserve discovered in 1972 at Badak Field, East Kalimantan, as well as the Samberah, Nilam and Mutiara fields.
In February 2011, a $1.7bn contract for engineering, procurement, construction and commissioning services was awarded to JGC Corporation. The scope of this contract covers includes the construction of a single LNG processing train plant and associated facilities.
JGC Corporation awarded a contract to Air Products for providing its patented propane pre-cooled mixed refrigerant process for the new plant. Air Products will also supply an multi-component refrigerant main heat exchanger for the plant.
JGC Corporation has subcontracted McConnell Dowell Indonesia to build the plant's marine facilities. McConnell Dowell Indonesia's scope of work includes the fabrication and supply of 500 steel pipes, a steel reinforcement for jetty and a material offloading facility.
About a million tons of LNG produced by the plant each year will be supplied to Chubu Electric Power. Kyushu Electric Power will be supplied with 300,000t of LNG a year, while Korea Gas Corporation is expected to import 700,000t a year.