Strategic Bojonegara Refinery Megaproject to Secure Domestic Gas Supply. The mega-project Land-Based LNG (Liquefied Natural Gas) Receiving and Regasification Terminal that will be built by PT Pertamina with the Kalla Group business unit, namely PT Bumi Sarana Migas (BSM), is considered to increase Indonesia's ability to secure domestic gas supplies, especially West Java.
the Kalla Group
The integrated energy facility complex will be located in Bojonegara District, Serang, Banten with an investment of around Rp 10 trillion. This could be a part of the planning of a national energy security system.
This cooperation is also a long-term solution to the fulfillment of domestic gas (LNG), said 98 Institute Executive Director Sayed Junaidi Rizaldi. He explained that the appointment of Pertamina as the only buyer (off-taker) for the refinery product indicated that the company could play an important role in the future supply of gas (LNG). Now, it only remains to be monitored jointly by the business system, whether it is transparent and open. Most importantly, Pertamina as a state-owned company should not suffer losses.
He added that apart from Pertamina and PT BSM, the refinery construction mega-project also involves foreign companies, namely Tokyo Gas and Mitsui. On the one hand, Sayed also hopes that Pertamina can become the operator in the mega-project for the construction of the integrated energy refinery.
Wianda Pusponegoro
The reason is simple, Pertamina is very experienced in managing refineries. All large-scale refineries in Indonesia are operated by Pertamina. Previously, Pertamina spokesperson Wianda Pusponegoro once commented that the company was very ready to become an off-taker in the megaproject as long as it was included in share ownership.
For information, this integrated energy terminal complex will be filled with LNG and regasification receiving terminals, new oil refineries, and PLTGU with a capacity of 1,000 MW to 2,000 MW. The entire project is built outside of Pertamina's planning map, or outside the Refinery Development Master Plan (RDMP) program for four existing refineries and two new Grass Root Refinery (GRR) refineries.
In addition, the construction of the PLTGU in the complex is also outside the Electricity Supply Business Plan (RUPTL) owned by PT PLN from 2016 to 2025. Megaproye is now expected to be operational in 2020, where the LNG receiving terminal facility can run first.
In the first phase, the LNG terminal capacity will be 500 MMscfd. However, the capacity will be enlarged to 1,000 MMscfd in the second phase. Based on Pertamina's data, West Java has experienced a gas deficit of 315 MMscfd in 2015. This figure is projected to increase threefold to 962 MMscfd in 2025. Nationally, Indonesia is predicted to experience a gas deficit of 1,013 MMscfd in 2015. This deficit will increase to 3,206 MMscfd. by 2025.
Harian Bangsa, Page-4, Wednesday, Nov 23, 2016
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