Director-General of Oil and Gas of the Ministry of Energy and Mineral Resources (ESDM) IGN Wiratmaja said there are still 63 LNG cargoes that have not been contracted or uncommitted for 2017 originating from the Bontang and Tangguh Refineries in Papua. Currently, his party is still in the negotiation stage to sell 13 cargoes as part of the 63 LNG cargoes.
Although the number of Liquefied Natural Gas / LNG that has not obtained the contract is very high, the government has not suggested selling the gas to the spot market. According to him, there is still an opportunity to sell liquefied natural gas to countries that have been customers so far, such as the limited regasification facilities in Indonesia, which means that LNG is not optimally purchased domestically.
Taiwan, Korea, and Japan. "Next year there are 63 cargoes, 13 cargoes are being negotiated. We want to be sold to existing buyers, "he said after the work meeting of the Ministry of Energy and Mineral Resources with Commission VII of the House of Representatives, Thursday (20/10).
LNG that has not been contracted is very significant because the production of several oil and gas fields is very good. However, this oil and gas field is not supported by adequate regasification infrastructure. On the other hand, LNG needs for power plants in Indonesia have been met. Based on data from the Ministry of Energy and Mineral Resources, the volume of LNG that has not been contracted in 2018 is 60 cargoes. Meanwhile, starting 2019, a supply of 27 cargoes from abroad will be needed.
In fact, LNG imports in 2024 will increase to 90 cargoes and 101 cargoes in 2025 due to increased domestic demand. Abadi Field, Masela Block has yet to start gas production. The gas supply from the Tangguh Refinery will begin to decline in 2024. Wiratmaja emphasized that until 2019, the government will not open an import route for liquefied natural gas.
LNG imports are likely to open after 2019. The Ministry of Finance is cutting the budget for the construction of a household gas network and converter kits for fishermen. The IDR 2.69 trillion budget allocated for the management and supply of oil and gas was cut by IDR 156.38 billion to IDR 2.54 trillion.
The reduction came from the city gas network construction ceiling of 15,500 household connections from 69,200 house connections to 53,700 house connections and the cutting of 4,400 converter kit units for fishermen from 28,400 units to 4,400 units. Another cut comes from the Coal Gasification Power Plant project with a capacity of 3 MW in South Kalimantan, valued at IDR 49.7 billion.
ESDM Minister Ignasius Jonan said the government would make adjustments so that they would not have a major influence on a number of programs that had been planned.
"We are adjusting. The Ministry of Energy and Mineral Resources tries to cut it as much as possible not to interfere with the development target for 2017, especially in the ESDM sector.
Bisnis Indonesia, Page-30, Friday, Oct 21, 2016
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