Gas allocation for domestic consumers slightly up in 2014
Monday, February 10 2014 - 12:48 AM WIB
This is a slight increase from last year?s allocation of 3,774 bbtud, or 52.1 percent of production.
?Gas allocation for the domestic (market) has continued to increase by an average of 9 percent since 2003,? said SKK Migas Public Relations Head, Elan Biantoro in a statement received late Sunday, pointing out that gas output allocated for the domestic consumers in 2012 accounted for 49.5 percent, and rose to 52.1 percent of output.
Meanwhile, gas export volume has continued to decline as a percentage to output, SKK Migas said. From 3,631 bbtud, or 50.5 percent in 2012 to 3,402 bbtud or 47.9 percent last year. For this year, export volume is projected to be lowered again to 42.7 percent, or 3,393 bbtud.
Elan said that the gas allocated to the domestic market are mostly used by the manufacturing, electricity, and fertilizer industries. ?In 2013, it represented 45 percent of the total gas allocation,? he said.
The manufacturing industry in 2013 absorbed about 19 percent, or 1,316 bbtud; electricity sector 16 percent or 1,097 bbtud, and fertilizer industry 10 percent, or 735 bbtud.
Elsewhere, SKK Migas said that measures taken to increase the domestic gas allocation include optimization of LNG delivery to the domestic market. This year, the domestic LNG supply committment totals 38 cargoes, up from 25 cargoes last year. This is because starting 2014, there is LNG supply for the Lampung Floating Storage and Regasification Unit (FSRU).
The Tangguh LNG plant operated by BP Berau Ltd will supply 16 cargoes of LNG to the domestic market five cargoes for the West Java FSRU, 6 cargoes for fertilizer firm PT Pupuk Iskandar Muda (swap mechanism), five cargoes for FSRU Lampung. Meanwhile, the Bontang LNG plant operated by PT Badak NGL will supply 22 cargoes to West Java FSRU.
SKK Migas said that new gas fields, whose output are entirely allocated for the domestic market, has also contributed in increasing the domestic gas allocation such as the 80 mmscfd of gas production from the Ruby field for fertilizer firm PT Pupuk PKT 5 starting October 27 of last year as well as the gas swap between Premier Oil and ConocoPhillips, underwhich Premier Oil will deliver gas to existing buyers of ConocoPhillips in Singapore so that ConocoPhillips can deliver its gas to the domestic buyers for Premier Oil particularly in West Java. The 40 mmscfd of the gas swap is received by state-owned electricity firm PLN, Banten province-owned company, and state-controlled gas distribution firm PGN.
Elan acknowledged that while domestic gas need continues to increase, the delivery of gas from the upstream sector to the consumers has been a challenge due to limited infrastructure, causing in some cases gas allocated for the domestic market could not be entirely absorbed.
Editing by Reiner Simanjuntak