Indonesia to Allocate 30% Gas From Masela Block for Domestic Consumption

Indonesian government is expected to allocate at least 30 percent of natural gas output from the Masela offshore block in Maluku for domestic usage, reports Jakarta Globe newspaper.

“We want 30 percent [from Masela] for domestic consumption,” Energy and Mineral Resources Deputy Minister Susilo Siswoutomo told reporters on Friday, adding that to date there were still no buyers for

“It does not matter who will get it [the natural gas], as long as it is allocated to the domestic market,” Jakarta Globe quotes Susilo as saying.

Inpex, as operator, holds 65 percent stake in the block while Shell owns the remaining 35 percent.

Masela will enter its commercial phase in 2018, effectively giving both Inpex and Shell only 10 years to recoup their expected $20 billion investment, adds the newspaper.

According to Jakarta Globe, investment project includes the exploitation of a natural gas block with estimated reserves of 20 trillion cubic feet, and the construction in two development phases of liquefied natural gas floating terminals with a combined capacity of six million metric tons.

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