Wednesday, 21 August 2019

Masela Block; Inpex Still Looking for Buyers

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Laila Afifa

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  • TEMPO.CO, JakartaMasela Block's contractor, Inpex Corporation, is still looking for buyers of liquefied natural gas (LNG) from the Abadi gas field. The Japanese contractor said that a number of investors have entered the company radar.

    "But no decision has been made regarding this gas purchase," Inpex Corporation CEO Takayuki Ueda said yesterday, July 16.

    Ueda said Inpex also welcomes prospective buyers—both domestic and foreign. He is optimistic that there are many national companies interested in utilizing Abadi field's gas. As for foreign investors, there are potential buyers from Japan, China and Taiwan.

    Ueda said Inpex will try to offer attractive gas selling prices, whilst admitting that LNG's market prices tend to be higher than natural gas.

    "But we will consider market conditions, production costs, and industry needs in determining selling prices," he said, adding that the company also plans to reduce the cost of energy facilities to come up with a competitive price.

    Meanwhile, the Upstream Oil and Gas Business Task Force's (SKK Migas) deputy of planning, Jaffee Arizon Suardin, said they have agreed to the sales price of gas from Abadi field. The price agreement is set out in the Masela Block plan of development (PoD) proposal from Inpex.

    "For LNG the price is US$7.5," he said. As for piped gas, the selling price is around US$6 per MMBTU.

    AHMAD FAIZ IBNU SANI | VINDRY FLORENTIN