Controversy Continues Over Location of Masela LNG Plant
Senin, 08 Februari 2016 - 16:17 WIB
Controversy Continues Over Location of Masela LNG Plant
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AMBON - The people of Maluku want the Liquefied Natural Gas (LNG) plant by Inpex Corp ini Masela block gain more from trickle down effect on the economy of region which is among the poorest in the country.
This thing appear while The Upstream Oil and Gas Regulator (SKK Migas) has organized a discussion focused on the multiplier effects of development of the Masela gas block on Maluku at Pattimura University joined with Bandung Institute of Technology (ITB), Surabaya Institute of Technology (ITS), University of Indonesia of Jakarta and Ambon Islamic Institute, Monday (8/2).
The discussion took place amid controversy over the location of plants that holds the contract to develop the block is believed to hold one of the country's largest gas reserves but the government has yet to give approval for the location of the plant.
On the contrary, the contractor considering the risk and cost to be paid , wanted the plant to be built offshore. An Inpex representative said the benefit for the local people is the same either the plant is to be built offshore or onshore. The island of Aru is considered the most suitable place if the facility is to be built on shore.
If the facility is to be built onshore it would need to build 60 kilometer gas pipes to transport the gas from the drilling location offshore to the island of Aru. Apart from additional cost, the pipes would be vulnerable to destruction by earthquakes that frequently hit that area.
Independent consultants, citing risk of earthquake, have recommended development of the LNG plant offshore as proposed by Inpex and Shell, the operators/investors of the Masela block.
Based on the feasibility study by Inpex construction for the Masela LNG plant, which will have an annual capacity of 7.5 million tons, would cost only about $14.8 billion, as against $22.3 billion if it is to be built onshore.
SKK Migas already approved the proposal but President Joko Widodo (Jokowi) needs more time to make the final decision. The president could not dismiss strong demand that the facility should be built on shore.
Coordinating Minister for Maritime and Resources Rizal Ramli said the multiplier impact on domestic industries would be much greater if the project was built onshore such as on the Aru island.
Charles Anidla from the Southwest Maluku association of intellectuals (ICMBD) said di Ambon, onshore LNG plant could be supplemented with a petrochemical industry complex on Aru Island or another island near the Abadi gas field, He said construction of the plant on land is expected to serve as a milestone bringing modernity to the region and reducing the poverty.
This thing appear while The Upstream Oil and Gas Regulator (SKK Migas) has organized a discussion focused on the multiplier effects of development of the Masela gas block on Maluku at Pattimura University joined with Bandung Institute of Technology (ITB), Surabaya Institute of Technology (ITS), University of Indonesia of Jakarta and Ambon Islamic Institute, Monday (8/2).
The discussion took place amid controversy over the location of plants that holds the contract to develop the block is believed to hold one of the country's largest gas reserves but the government has yet to give approval for the location of the plant.
On the contrary, the contractor considering the risk and cost to be paid , wanted the plant to be built offshore. An Inpex representative said the benefit for the local people is the same either the plant is to be built offshore or onshore. The island of Aru is considered the most suitable place if the facility is to be built on shore.
If the facility is to be built onshore it would need to build 60 kilometer gas pipes to transport the gas from the drilling location offshore to the island of Aru. Apart from additional cost, the pipes would be vulnerable to destruction by earthquakes that frequently hit that area.
Independent consultants, citing risk of earthquake, have recommended development of the LNG plant offshore as proposed by Inpex and Shell, the operators/investors of the Masela block.
Based on the feasibility study by Inpex construction for the Masela LNG plant, which will have an annual capacity of 7.5 million tons, would cost only about $14.8 billion, as against $22.3 billion if it is to be built onshore.
SKK Migas already approved the proposal but President Joko Widodo (Jokowi) needs more time to make the final decision. The president could not dismiss strong demand that the facility should be built on shore.
Coordinating Minister for Maritime and Resources Rizal Ramli said the multiplier impact on domestic industries would be much greater if the project was built onshore such as on the Aru island.
Charles Anidla from the Southwest Maluku association of intellectuals (ICMBD) said di Ambon, onshore LNG plant could be supplemented with a petrochemical industry complex on Aru Island or another island near the Abadi gas field, He said construction of the plant on land is expected to serve as a milestone bringing modernity to the region and reducing the poverty.
(rnz)
