Eni makes first shipment of LNG cargo from Jangkrik field
Thursday, June 22 2017 - 01:33 AM WIB
Italian firm Eni made on Wednesday the first shipment of LNG cargo from the Jangkrik field via the Bontang LNG plant in East Kalimantan to the Benoa LNG regasification terminal in Bali.
Eni, which operates the Muara Bakau block, where the Jangkrik field is located, started gas production at the field on May 15.
Upstream oil and gas authority SKK Migas said in a statement that the first LNG cargo, with a volume of 22,500 m3, forms part of a long-term contract signed with state-owned oil and gas firm PT Pertamina, as an off taker.
Deputy Chairman of SKK Migas, Sukandar said in the statement that much of the gas output from the Jangkrik project will be prioritized for meeting domestic demand including from fertilizer and power plants.
The Jangkrik development project comprises of the Jangkrik and Jangkrik North East gas fields located in the Muara Bakau block, Kutei basin, in the deep water of Makassar Strait.
Gas production from ten deep-water subsea wells, connected to the newly built Floating Production Unit (FPU) ?Jangkrik?, will gradually reach 450 million standard cubic feet per day (mmscf/d), equivalent to 83,000 barrels of oil equivalent per day (boed). The gas, once processed onboard the FPU, will flow via a dedicated 79km pipeline to the Onshore Receiving Facility, both built by Eni, and then through the East Kalimantan Transportation System, finally reaching the Bontang gas liquefaction plant.
Eni is the operator of the Muara Bakau block with a 55 percent stake of the Muara Bakau PSC through its subsidiary Eni Muara Bakau B.V. The other partners are ENGIE E&P (through its subsidiary GDF SUEZ Exploration Indonesia BV) with 33.334 percent and PT Saka Energi Muara Bakau with 11.666 percent.
Elsewhere, Sukandar said that the first LNG cargo shipment proves that oil and gas development in East Kalimantan is still attractive. He expected Eni to continue efforts to find new reserves in the Muara Bakau block.
Sukandar said that oil and gas potential in eastern part of Indonesia is still prospective to be developed, pointing out that a number of gas development projects are being planned in the region.
Editing by Reiner Simanjuntak