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."
The Indonesian Catholic Students Association (PMKRI) appreciated the decision saying the development and management of the Masela Block's LNG refinery onshore would improve the local resident's welfare.
"We appreciate the decision of the president to build the refinery onshore. What is important is that the presence of the plant onshore will have a positive impact on the basic needs of the local people," PMKRI's Regional Commissioner for Maluku, Tarsisius Sarkol said in the Maluku provincial capital Ambon on Thursday.
He said the president's decision complied with the aspirations of the Maluku people, who wanted the refinery plant of the country's largest gas field Masela in the Arafura Sea, Maluku, to be built onshore instead of offshore.
The central government and the local administrations of Southwest Maluku and Southeast Maluku Barat districts, he said, should continue to take follow-up steps to prepare supporting infrastructures for the project.
"The local governments should give priority to the development of what is needed by the local people, such as roads, health, clean water and other basic needs," Tarsisius said.
In the meantime, the Maluku government also welcomed President Jokowi's decision to build the LNG plant onshore.
"The Maluku government and its people laud the president's decision. The president has decided to build the LNG plant onshore to process gas from the Masela block, Maluku," Governor Maluku Said Assagaff said on Wednesday.
The president's decision was in line with the aspirations of the Maluku government. The governor said the project should be built soon as part of the efforts to create employment for Maluku's people.
"The decision is expected to improve the welfare of people," the governor remarked.
The governor also called on all sections of the society to accept the decision as it was in accordance with the wishes and aspirations of the people in the area.
Maritime Affairs Coordinating Minister, Rizal Ramli expressed gratitude for the president's decision to develop the LNG refinery plant onshore in accordance with his recommendation.
"Thank God, the president has decided to develop it onshore. Hopefully, the Indonesian people will feel the benefit of the abundant natural resource," he twitted on his account Twitter@RamliRizal on Wednesday.
Rizal said in a text message, which he sent to reporters that President Jokowi is complying with the message of the Constitution wherein the natural resources should be exploited for the welfare of the Indonesian people.
"Hopefully, the Indonesian people will increasingly enjoy the benefit of the country's abundant natural resources," he said. The Masela Block is believed to have reserves of more than 20 trillion cubic feet of gas.
The presidential decision is expected to end the controversy over whether the facility is to be built onshore or offshore.
Investors, such as Japan's Inpex Corp. and Shell, backed up by Energy and Mineral Resources Minister Sudirman Said, wanted the project to be built offshore saying it would cost less.
Based on the feasibility study conducted by Inpex, building the LNG plant offshore would cost only about $14.8 billion, as against $22.3 billion if it is built onshore on the Aru Island or US$19.3 billion if built on the Tanimbar Island.
Additional cost would be incurred for around 60 kilometers of gas pipes under the sea if the plant is to be built on the nearest island, such as Aru.
Apart from the additional cost, the pipes would be vulnerable to destruction by earthquakes that frequently hit that area.
Independent consultants, citing the risk of a earthquake, have also recommended the development of an LNG plant offshore as proposed by operators or investors.
Upstream Oil and Gas Regulator (SKK Migas) has also already approved the proposal.
However, Minister Rizal had strongly recommended that the facility be built onshore. He spoke of the possibility of integration of the plant with the petrochemical industry if the plant is built onshore on the Aru Island.
Rizal had said that based on his study, the cost of developing an onshore refinery would be around 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 Inpex Corp and Shell, which are set at US$14.8 billion for the offshore and US$19.3 billion for the onshore refinery.
On Wednesday, President Jokowi finally announced the location of the option scheme of the project.
He told reporters after a visit to the border city of Entikong in West Kalimantan that he had decided to build the Masela LNG plant onshore. He added that his decision was based on a number of factors.
"This is a long term project, not only 10 years, 15 years, but much longer, involving hundreds of trillions of rupiahs. Therefore, based on the various factors, we decided to build (the project) onshore," he stated. ***1***(A014/INE/B003)EDITED BY INE
(T.A014/A/BESSR/Bustanuddin) 24-03-2016 19:07:3 |
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