BPMIGAS approves gas supply for Nunukan power plant

Upstream authority BPMIGAS has approved a supply of natural gas of about 5 million standard cubic feet per day (mmscfd) from JOB Medco Simenggaris? South Sembakung gas field for power generation in Nunukan regency at the borders between East Kalimantan and Malaysia.

Basri, the regent of Nunukan regency, said in Jakarta on Monday BPMIGAS strongly supported the gas supply for Nunukan. ?We hope the gas supply will go onstream in October,? he said.

Basri said that the gas supply would be able to improve economy in the regency so that the economic gap of the Indonesians living in the area and their Malaysian neighbors could be narrowed.

Meanwhile, Deputy for Operation of BPMIGAS Rudi Rubiandini said that the agency would also support additional gas supply for the regency in the future not only for power generation but also for the production of compressed natural gas (CNG).

CNG is much cheaper and that the people especially fishermen in the area could use cheap fuel for their vehicles and boats. At present, the price of gasoline in the regency is far higher compared to the price in other parts of the country due to high transportation costs to the regency.

Rudi said gas production at the South Sembakung gas field was estimated to reach 30 mmscfd. Part of the gas production will also be supplied to Tanah Tidung regency. ?The gas production will be used to meet the local needs,? he added.

Editing by Roffie Kurniawan