Gas deficit in Sumatra and Kalimantan to end in 2010

Gas deficit occurring in eastern Kalimantan and northern Sumatra will end in 2010 after Indonesia cuts LNG exports.

 

The two regions is suffering from gas shortage because Indonesia export most of its gas to fulfill LNG export commitment.

 

“It (deficit) occurs because we must respect (LNG) contracts. In the future, the government will prioritize gas allocation to the domestic market and if possible, the rest will be exported,” said Energy and Mineral Resource Purnomo Yusgiantoro upon announcing Indonesia’s Gas Balance in Jakarta on Friday.

 

The Gas Balance report says that as of January 31, 2007, gas deficit reached 450.1 million cubic feet per day (MMSCFD) in eastern part of Kalimantan and 26.5 MMSCFD in northern part of Sumatra.

 

Gas export contributed Rp 18 trillion to the state revenue in 2006, said the Minister, adding that the government expected industries to build factories in regions recording surplus in gas, such as western Java, eastern Java and central Sulawesi.

 

Vice President Jusuf Kalla said that the government would use the Gas Balance report as the basis for decisions to extend  LNG sales contract to any countries.  

Meanwhile, state owned oil and gas company PT Pertamina's president Ari H. Soemarno said Indonesia would only be able to extend sales contracts of LNG from Bontang, East Kalimantan with  Japan amounting to 3 million tons per year after 2010.

Japanese buyers now have contracts with the Badak LNG plant in Bontang to buy 12 million tons of LNG per annum that are due in 2010.

Ari said that the volume of the extended contract could be increased if deepsea field in East Kalimantan belonging to PT Chevron Pacific Indonesia (CPI), a subsidiary of American energy giant Chevron Corp., was able to produce gas maximally. "Based on the Gas Balance, LNG exports to Japan will only reach three million tons (after 2010),” he was quoted by Investor daily as saying on Friday.

The Gas Balance report says East Kalimantan will start recording gas surplus as much as 161.5 MMCFD in 2010. The surplus will increase to 1,629.6 MMCFD in 2011 and  1,256 MMCFD in 2012.

CPI has made a plan of development for its deepsea field in East Kalimantan to boost gas supplies for the Badak LNG plant, but Planning Affairs Deputy at Oil and Gas Regulating Body (BPMIGAS) Achmad Lutfi disclosed that the agency had returned the PoD to the company, asking it to review the plan.(*)