East Java experiencing gas oversupply

By Godang Sitompul

East Java, whose total gas needs are estimated to reach 150 mmscfd this year, is enjoying a surplus in gas supply of up to 130 mmscfd, according to state oil and gas firm PT Pertamina.

The surplus comes from ?Kangean, which amounts to 100 mmscfd, and West Offshore Madura 30 mmscfd,? said Pertamina Vice President of Gas Resources & Subsidiary Management Gas and Power Jarwo Sanyoto on Thursday.

Jarwo added that in general, gas supply in East Java is smoother if compared to West Java for instance due mainly to a higher price.

?In West Java, the prices are mostly low, even as low as $4 per mmbtu. That?s not the case in East Java, where prices are reaching $10 per mmmbtu. So it?s worth noting that an oversupply does not necessarily mean low price,? he said.

Editing by Dadan Wijaksana