East Kalimantan certified gas reserves reach 51.8 tcf

East Kalimantan certified gas reserves totaled 51.8 trillion cubic feet including some 31 tcf managed by TotalFinaElf E&PIndonEsie, the local Kaltim Post daily reported Tuesday.

The paper said that this excluded the new gas reserves found in the Makassar Straits estimated at between 6-9 tcf.

The paper quoted the figure from speaker of the East Kalimantan provincial legislative council Sukardi Djarwoputro following a meeting with TotalFinaElf E&PindonEsie officials.

Sukardi said that only around 33 tcf of the gas reserves would be absorbed by domestic industry, while the remainder would have to go the overseas market.

But he quoted TotalFinaElfE&PindonEsie vice president Tjejep Muljana as saying that the competition in the LNG export market is very tough.

TotalFinaElf led a consortium which controls eight LNG train facilities supplying gas for the production of LNG at PT Badak NGL plant.

Total plans to expand its ninth train facility called the Train I in a bid to boost export, but the plan might be dropped if the government preferred to develop the Tangguh LNG plant in Irian Jaya.

The government is planning to supply LNG to China. The LNG source may either come from the Tangguh plant or the Train I facility in East Kalimantan.

The Tangguh plant is controlled by a consortium led by BP.(*)