Asia/Pacific News
Shell Could Help with LNG Ship Conversions
As it continues to work with Royal Dutch Shell Plc (Shell) on the development of oil and gas resources in the Marsela block, the Indonesian government is seeking the company's help converting ships from diesel to liquefied natural gas (LNG) power, Indonesia's Antara News reports.
"To convert diesel into gas for thousands of ships will really help Indonesia," said Energy Minister Jero Wacik, who participated in a meeting between Shell CEO Peter Voser and Indonesian officials Saturday.
Voser confirmed the company's commitment to work on the Marsela block, and Wacik said its initial investment there is worth $5 billion.
"The company's investment in various fields is expected to increase to US$25 billion," he said.
Wacik said Indonesia has asked Shell to help with developing new energy sources and technology transfer for renewable energy, including assistance with the ship conversions.
Indonesian President Susilo Bambang Yudhoyono also said he is grateful to Shell for its work in the nation.
"I believe that energy security is very important, very significant, so we need to work together for the benefit of both Indonesia and your company," he said.
Japanese oil and gas firm INPEX Corp., which is working with Shell in developing Indonesian energy resources, has said the Marsela gas block is expected to produce at an initial level of 2.5 million tonnes per annum (MTPA) for 30 years, Chinese news organisation Xinhua reported in September.
