Donggi-Senoro LNG

Image Source : Donggi-Senoro LNG – Homepage

Location : Banggai Regency of Central Sulawesi province

Indonesia holds one of the largest known natural gas reserves in Asia. As of 2018, the country is the world’s third biggest exporter of LNG. DonggiSenoro LNG (DSLNG) was formed on 28 December 2007 by Pertamina Energy Services Pte. Ltd. (29%), PT Medco LNG Indonesia (20%) and Mitsubishi Corporation (51%). The shareholding was revised in 2011 to PT Pertamina Hulu Energi (29%), PT Medco LNG Indonesia (11.1%) and Sulawesi LNG Development Ltd. (59.9%). In the same year, construction of a single train LNG plant was initiated in the Banggai Regency in the Province of Central Sulawesi, approximately 45 km south-east of Luwuk.

The liquefaction train along with its associated infrastructure, including supply jetty, LNG storage tank, condensate storage tank and LNG loading jetty, are spread out on a 100-hectare site on the coast along the Peling Strait. The 2 MMTPA capacity plant was built at an estimated investment of $3 billion and uses the Air Products and Chemicals Inc. (APCI) liquefaction technology. The plant was officially inaugurated by the President of the Republic of Indonesia on 2nd August 2015 and shipped its maiden cargo to Arun LNG Terminal in Nanggroe Aceh Darussalam Province of Indonesia. At full capacity the facility can deliver 36 cargos per year.

The project has a unique USP of being the first LNG operating company to be owned entirely by Asian entities. The project is developed as a “Downstream business activity”, which separates the business of feedstock gas supply (upstream) and LNG liquefaction (downstream), to offer great financial flexibility. DSLNG purchases natural gas through gas supply agreements, converts it into liquefied natural gas (LNG) at the plant and supplies LNG to Chubu Electric (1 MMTPA), Kyushu Electric (0.3 MMTPA) and Korea Gas Corporation (0.7 MMTPA) through long-term delivery contracts. Supply of 250 million cubic feet of gas per day is committed from the SenoroToili Block operated by Joint Operating Body of Pertamina Medco E&P Tomori Sulawesi (JOB PMTS), in addition to the contract to supply 85 million cubic feet of gas per day from the Matindok Block operated by Matindok Gas Development Project (MGDP).

Between 2008 and 2010, DSLNG’s philanthropic activities were intended to promote awareness of the company and its project. In 2011, grass-root level social initiatives were deployed through establishing CSR Centres (commonly known as RumahPendampingan) at three nearby villages; Uso, Honbola, and Kalolos. DSLNG’s CSR Program includes seven areas of concern: Community Health (malaria eradication campaign, maternal and child health programs), Education (roaming library, scholarships programs and vocational training), Livelihood and Local Economic Development (micro financing and family savings for women and children and agricultural training, cultivation and crop management for men), Infrastructure (Road repair), Socio-Cultural, Environment, and Humanitarian Support.

The region has a rich natural environment housing diverse ecosystem. DSLNG employs strict measures to protect this precious environment. The company supports reef rehabilitation activities, which aim to recover the coral reef ecosystems damaged by blast fishing. On June 5, 2013 a facility was inaugurated near the plant, for ex situ conservation of Maleo bird population in Sulawesi.

OWNERSHIP (Equity %)

Sulawesi LNG Development	59.90%
PT Pertamina Hulu Energi (PHE)	29.00%
PT. Medco LNG Indonesia (Medco Energi)	11.10%

General Data

Estimated Capital Cost (USD)	2.8 B
Plant Type	Onshore Stick-built
Plant Stage	Operating
Final Investment Decision (FID) Year	2011
FEED Contractor	Technip
EPC Contractor	JGC Corporation
No. of Trains / capacity	1 Train / 2 MMTPA
Production Start Year	2015
Products	LNG,Condensate
Gas Type	Non-associated Gas (NAG)

Technical Data

Cooling Media	Air
Liquefaction Technology	APCI AP-C3MR™
Refrigeration Train Details:
Propane String
Driver	GE MS5432D (Frame 5D) Heavy Duty Gas Turbine
Propane Compressor	11H-5S Mitsubishi Compressor Corporation Horizontally Split Centrifugal Compressor
Helper	TMEIC 4.5 MW Electric Motor
Low Pressure (LP) Mixed Refrigerant (MR) String
Driver	GE MS5432D (Frame 5D) Heavy Duty Gas Turbine
LP MR Compressor	11H-4 Mitsubishi Compressor Corporation Horizontally Split Centrifugal Compressor
Helper	TMEIC 4.5 MW Electric Motor
HP Mixed Refrigerant (MR) String
Driver	GE MS5432D (Frame 5D) Heavy Duty Gas Turbine
HP MR Compressor	7V-6 Mitsubishi Compressor Corporation Radially Split Centrifugal Compressor
Power Generation	3 x GE MS5001 Heavy Duty Gas Turbines

Refrigeration Train Configuration

Key Facts

DSLNG is the first Indonesian LNG project to adopt a ‘downstream development model’, which involves separate development of upstream (feedstock gas supply) and downstream (LNG manufacturing) businesses. DSLNG purchases natural gas from PT Pertamina EP (Matindok area) and PT PHE Tomori Sulawesi, PT Medco E&P Tomori Sulawesi and Tomori E&P Limited (UK) (Senoro field). This supply is used as feed gas to produce LNG at the DSLNG-owned liquefaction plant.^1,2
Originally, DSLNG shareholding was Pertamina Energy Services Pte. Ltd. (29%), PT Medco LNG Indonesia (20%) and Mitsubishi Corporation (51%). In February 2011, the ownership was revised to PT Pertamina Hulu Energi (29%), PT Medco LNG Indonesia (11.1%) and Sulawesi LNG Development Ltd. (59.9%) – a joint ownership of Mitsubishi Corporation (75%) and KOGAS (25%).³
DSLNG has the capacity to ship a total of 36 cargoes per year. Long term SPAs have been signed with JERA Co. Inc (JV of Chubu Electric & Tokyo Electric) for 12 years and with Kyushu Electric Power and KOGAS for 15 years. In case the long-term agreements are declined, then the cargo will be available for the spot market.^4,5
In February 2011, a USD 1.7 billion contract for engineering, procurement, construction and commissioning services (EPC) was awarded to JGC Corporation. JGC subcontracted Air Products for the refrigerant process and main heat exchanger, while McConnell Dowell, Indonesia was charged with the development of plant’s marine facilities.⁶
In 2014, the plant earned the status of ‘A National Vital Object’ from the Government of Indonesia, following which the project was ready for start-up in February 2015. First drop of LNG was produced on 24 June 2015, resulting in first shipment on 2 August 2015. In December 2016, the Ministry of Environment and Forestry awarded DSLNG the Blue Proper Rating Award. The plant obtained ISO 14001:2015 Certification in December 2017 and shortly thereafter shipped its 100^th Shipment in February 2018.⁷
DSLNG has received over 25 awards and accolades for various initiatives including Corporate Social Responsibility, Environment and Conservation, Women Empowerment, Sustainable Development in Economic & Education, Human Development & Cultural Affairs. In September 2018, the plant received the Patra Karya Nirbhaya Utama Award from the Ministry of Energy and Mineral Resources, for achieving 25 million safe working hours.^7,8,9,10
In November 2015, GE Oil and Gas Indonesia was awarded a $108 million contract for monitoring and maintaining both GE and non-GE manufactured machines at DSLNG.¹¹
During the construction phase of DSLNG, there were several conflicts and demonstrations among the local communities, who demanded employment and inclusion in the project. 50% of the workforce was sourced locally, however majority of the workers were erstwhile farmers and fishermen, with little or no technical skills and a general lack of understanding about safety. Several coaching, skill training and safety workshops were conducted for the local hires, resulting in securing 34 million worker hours without Lost Time Incident (LTI).¹²
In December 2016, DSLNG achieved production of 2.2 MMTPA of LNG, which was 10% more than its nameplate capacity of 2 MMTPA. In addition, the plant achieved 20 million safe working hours and was awarded the Patra Karya Nirbhaya appreciation by the Ministry of Energy and Mineral Resources.¹³
Donggi-Senoro LNG started producing condensate in 2015. In 2016, the plant signed a condensate SPA with PT Titis Sampurna and PT Surya Mandala Sakti for domestic supply. In August 2018, the agreement was extended to supply 800,000 barrels per year of condensate for three years until 2021, with end user Chandra Asri Petrochemical.^14,15
In August 2018, Chiyoda Corporation announced its agreement with Donggi-Senoro LNG, to implement the world’s first application of Artificial Intelligence and Deep Learning in an LNG plant. Chiyoda’s strategic alliance partner, GRID Inc. will provide the artificial intelligence technology, to improve plant productivity in a safe and efficient manner.¹⁶