About 50% of gas production and the Jangkrik field, Muara Bakau Block located in the Makassar Strait will be used for domestic industrial needs. The gas field, which is operated by Eni Muara Bakau B.V, will start operating next year.
Director-General of Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM), IGN Wiratmaja Puja, said that the Jangkrik Field project has secured a gas buyer. About 50% of the gas from the Jangkrik Field will be purchased by industries in Indonesia. Eni as the operator targets the peak production in the oil and gas block to reach 450 MMscfd.
PT Pertamina is one of the buyers of gas from the Jangkirk field with a volume of 1.4 million tons per year until 2024 with a total transaction value of US $ 4.4 billion. Wiratmaja explained that Pertamina would use the gas to generate electricity.
the Jangkirk field
The government, he said, allowed Eni to export about 50% of the gas from the Jangkirk Field because the domestic market was no longer able to absorb it. To date, there are 63 cargoes of liquefied natural gas / LNG that have not been absorbed in 2017. Some of these cargoes are in the process of negotiation.
He hopes that countries that have been the main consumers of gas from Indonesia, such as Japan, South Korea, and Taiwan, will buy the gas. However, the government will not shut out other countries' interest in buying LNG from Indonesia. The performance of several gas fields is very good, so the gas cargo that has not been contracted is very large. However, it is not supported by adequate regasification infrastructure (facilities for converting LNG to natural gas).
Wiratmaja is reluctant to mention that the gas fields that contribute to production are very high. Meanwhile, LNG needs, especially for domestic power plants, 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. However, the government projects that starting in 2019, Indonesia will need a supply of 27 LNG cargoes from abroad. In fact, LNG imports will increase in 2024 to 90 cargoes and 101 cargoes in 2025 due to increased domestic demand.
The Masela Block
This is because the gas supply from the Abadi Field, Masela Block has not been calculated. In addition, LNG supply from the Tangguh Refinery has also decreased. Therefore, the government has not made a decision to import LNG in 2019. Previously, the Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Amien Sunaryadi said there were four new projects in 2017.
Bisnis Indonesia, Page 30, Thursday, Nov, 17, 2016
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