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DSLNG strengthens condensate supplies for domestic market

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LNG Industry,

PT Donggi-Senoro LNG (DSLNG) has announced that it is strengthening condensate supplies for the domestic market through a sale and purchase agreement (SPA) with a consortium of PT Titis Sampurna and PT Surya Mandala Sakti.

DSLNG Operations Director, Kurniawan Rahardjo, said: “We are proud to be able to continue our commitment to strengthen domestic condensate supplies, in this case to be used as feed stock for the domestic petrochemical industry.”

Under the terms of the contract, DSLNG will continue to supply 800 000 barrels/yr of condensate for a period of three years until 2021 to the consortium, with the end-user being PT Chandra Asri Petrochemical.

Kurniawan added: “We appreciate all companies incorporated in this consortium as well as end-users, hopefully this continuation of cooperation can be beneficial for all.”

DSLNG originally started producing condensate in 2015. Condensate is a by-product of the gas processing process to LNG at the Donggi Senoro LNG plant, which is located at Banggai Regency of Central Sulawesi Province. The LNG plant receives feed gas from two upstream producers – namely JOB Pertamina-Medco E&P Tomori Sulawesi (PMTS), which operates the Senoro gas field, and PT Pertamina Exploration and Production (EP), which operates Donggi and Matindok gas fields.

Aditya Mandala, DSLNG Corporate Affairs Director, noted that the LNG plant is the first project in Indonesia to use a downstream business scheme, separating the gas production at the upstream and the LNG processing at the downstream. Aditya said: “The downstream business scheme allows optimisation of state revenue because the LNG plant investment is not subject to cost recovery.”

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