SKK Migas to Invite Petrochemical Industry Players to Use Masela Gas

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) plans to summon players in the petrochemical industry to discuss the right scheme for utilising gas from the Masela Block.

SKK Migas Chief Amien Sunaryadi said a workshop on the utilisation of gas from the Masela Block will be held in August this year. SKK Migas will invite petrochemical industry players and representatives from the Maluku provincial administration to participate in this workshop. (Read: Government to Invite Foreign Investors to Build Industries in Masela Block)

This workshop is expected to help participants reach an understanding about the petrochemical industry. “When we talk about it (the petrochemical industry), but define it in different ways, it is difficult. It would also be odd for SKK Migas to talk about it because it is not an institution engaged in the petrochemical sector. Our friends in Maluku talk about the petrochemical industry, but they do not understand what the petrochemical industry is,” Amien said in Jakarta on Thursday (28/7).

So far, no investors have expressed an interest in investing in the petrochemical industry in Maluku. However, several petrochemical industry players will be invited to the workshop, such as Chandra Asri Petrochemical and Trans Pacific Petrochemical Indotama (TPPI). Multinational Belgian company Shell will also attend the event.

Some of these companies will present their plans for utilising gas from the Masela Block for the petrochemical industry. This way, all aspects of the industry will be explained, from the right technology to use, the demand for gas, the number of human resources, to the land required to build the petrochemical industry.

The requirements for building a petrochemical chemical industry and the number of refineries needed will also be explained during the workshop. “So the people of Maluku will understand and make the right decision,” said Amien. (Read: SKK Migas In Search of 600 Hectares of Land for Masela Block Project)

Previously, Amien said the government had named seven islands that are viable locations for the Masala Block’s onshore refinery. Two, the Selaru and Yamdena islands, are located in Maluku Tenggara Barat District; and the other two, the Babar and Masela islands, are located in Maluku Barat Daya District. Another option is Aru Island in Kepulauan Aru District. "There are also another two small islands," said Amien on 21 June.

The block’s operator, Inpex Corporation, however, does not believe the gas from the block can be used for the petrochemical industry. Inpex spokesman Usman Slamet said lab results show the characteristics of the gas at the block’s Abadi field are different from gas in other areas. The gas in the field is lean gas, not wet gas.

The gas from the block contains only methane (C1), ethane (C2) andpropane (C3). C1 is only above 85 percent. According to Usman, based on these characteristics, Masela gas can only be used to produce urea and ammonia. It cannot be used to make paraffin and olefin. (Read: Inpex Rebuffs Rizal Ramli, Says Masela Gas Cannot be Used for Petrochemical Industry)

“It cannot be used for petrochemicals. You can’t force it to either. He (Rizal Ramli) is just selling a dream,” Usman said to journalists in Jakarta, a few weeks ago.