MALUKU RESIDENTS WELCOME PLAN TO BUILD MASELA LNG REFINERY ONSHORE

By Andi Abdussalam

Jakarta, March 24 (Antara) - Maluku residents have expressed their happiness over President Joko Widodo's (Jokowi's) decision to build the country's largest onshore Masela gas refinery in the Maluku Province after much deliberation on whether it should be built onshore or offshore.          Local society leaders and academicians lauded the president's decision to build the Masela Block¿s liquefied natural gas (LNG) refinery plant onshore. They expressed happiness when contacted by the Antara National News Agency on Wednesday.          Statements of happiness were voiced by among others, the Director of the Archipelago Solidarity Foundation Engelina Pattiasina, Pattimura University Rector Saptenno, Darussalam University Rector Ibrahim Ohorella and noted Southwest Maluku society figure A Watloly.          "We thank President Jokowi and the Coordinating Minister for Maritime Affairs, Rizal Ramli because they complied with the aspirations of the Maluku people. The decision is good, not only for the prosperity of the Maluku people, but also for the people of Indonesia," said Engelina.          She said the decision is also in line with Article 33 of the 1945 Constitution. "Oil and gas industry may not be developed, only based on a profit-loss oriented calculation, but also based on its impact on the people."

GOVERNMENT YET TO DECIDE MASELA GAS REFINERY LOCATION

by Andi Abdussalam

Jakarta, March 10 (Antara) - As of this week, the government has not yet decided whether to develop an onshore or offshore liquefied natural gas refinery at the Abadi natural gas field, Masela Block, in Arafura Sea, Maluku Province.          President Joko Widodo (Jokowi) has not decided upon a location for the LNG refinery plant, following controversies over the economics and costs involved in the construction of an onshore or offshore refinery.          "There is no final figure yet. We are still waiting for the calculation of real and accurate figures for the construction costs of the Masela gas refinery, both onshore and offshore," Amien Sunaryadi, the head of the Upstream Oil and Gas Regulator (SKK Migas) said following a hearing with the Regional Representative Council (DPD) on Monday (March 7).          There have been differences in construction cost calculations between Coordinating Minister for Maritime Affairs Rizal Ramli and project contractor Inpex Corp of Japan and its partner, Royal Dutch Shell.       Rizal Ramli said, based on his study, the cost of developing an onshore refinery would be some US$16 billion, while the cost for developing it offshore would reach US$22 billion.          He added that the calculation was far different from the cost estimates provided by Japan's Inpex Corp and Shell, which are set at US$14.8 billion for the offshore and US$19.3 billion for the onshore refinery.