Another energy journal reporting on EWC Sengkang lng plant...

Another energy journal reporting on EWC Sengkang lng plant (report dated 23 January, 2015).
http://interfaxenergy.com/gasdaily/article/15081/new-lng-plants-will-not-stop-the-indonesian-rot
New LNG plants will not stop the Indonesian rot
By Robert Sullivan
Posted 23 January 2015 12:43 GMT
Indonesia's Lampung FSRU. The country is adding more LNG import capacity. (Höegh )
The expected startup of two LNG plants in Indonesia this year appears unlikely to be enough to offset the projected decline of the country’s total LNG output and exports in 2015, as it continues its shift towards more limited liquefaction in the years to come.
Overall output has been shrinking in recent years as a result of declining production from the Bontang LNG complex in Kalimantan, while the Arun LNG plant in Sumatra stopped operations in October 2014 as Pertamina is converting it into an import terminal (see Pertamina prepares for LNG balancing act, 29 September 2014).
Utilisation rates –the level of production versus the facility’s capacity – at LNG plants in Indonesia averaged 50% over the first nine months of 2014, after a steady decline from 70-80% in 2010, according to figures published by Bernstein Research this week.
Indonesia’s upstream regulator SKKMigas expects LNG output to fall by 15% to 258 cargoes in 2015, down from an estimated 298 cargoes loaded in 2014, 289 in 2013 and 314 in 2012.
The number of cargoes exported has also tumbled since 2010, as more have been allocated to the domestic market. SKKMigas expects 200 cargoes will be shipped overseas this year, compared with 267 in 2014. However, the number supplied to Indonesian buyers is set to go up to 58, from 31 in 2014.
These declines are expected despite the approaching startup of two LNG plants on Sulawesi island – Donggi-Senoro and Sengkang.
The 2 mtpa Donggi-Senoro plant is expected to come online around June, according to analysts, and will export all its production to Japanese and South Korean buyers under long-term contracts running to 2027. Chubu Electric will take 1 mtpa, while 0.3 mtpa will go to Kyushu Electric and 0.7 mtpa to Kogas (see Donggi-Senoro LNG plant back on track after false starts, 15 March 2012).
The $2.08 billion project was initially scheduled to begin production in 2014, and operator Mitsubishi and its partners – Indonesia’s state-run Pertamina and private Medco Energi – have not elaborated on the reasons behind the delay announced in 2013. However, officials in the joint venture have noted the plant’s main source of feed gas – which will provide 7.1 million cubic metres per day (MMcm/d) – will not come online until mid-2015.
Sengkang LNG, which is being developed by Hong Kong-based Energy World Corp., is also slated to begin production this year.
Unlike Donggi-Senoro, the majority of Sengkang’s output is almost certain to be kept in Indonesia – based on a memorandum of understanding Energy World signed in 2008 to supply 1.5 mtpa over 10 years to a unit of Perusahaan Listrik Negara, Indonesia’s national power company. However, Energy World has not mentioned the agreement in recent updates on the project.
Sengkang LNG uses modular LNG liquefaction units with a capacity of 0.5 mtpa each. Energy World says the first unit will be completed before 30 June, and that its Wasambo gas field in South Sulawesi will be sufficient to supply the first train at full capacity for six years.
Three additional 0.5 mtpa units are expected to be introduced at three- to six-month intervals after the first unit comes online, although these are subject to the development of other nearby gas fields.

Long-term solutions?
Although Indonesia has additional LNG production capacity planned, new volumes are still years away. BP aims to take an FID on adding a third train to its 7.6 mtpa Tangguh plant this year, which would add 3.8 mtpa of capacity from 2019 (see BP’s Tangguh Train 3 expansion wins key approval, 5 August 2014).
New volumes could also come from Inpex and Shell’s 4.5 mtpa Abadi FLNG project. However, the oil price crash has raised doubts about the economics of a small floating plant in such a large gas field, and the partners are said to be discussing whether to enlarge the project or delay it until the mid-2020s (see Abadi FLNG grows less appealing in an $80/bbl world, 25 November 2014).
At the same time, Indonesia’s LNG import capacity is also growing. The Arun terminal, expected to startup within weeks, will become the country’s third terminal after the Lampung and West Java FSRUs, and two more are planned.
Indonesian buyers have signed two offtake agreements with the Corpus Christi LNG plant in the United States, from 2018 and 2019, as well as non-binding agreements for deliveries from Mozambique and Jordan Cove, also in the US.