Gas demand in E. Java to reach 2.48 BSCFD in ten years

The demand for gas in East Java is expected to substantially increase to 2.48 billion standard cubic feet per day (BCSFD) in 2009 and to 3.3 BCSFD in 2013 from about 1.48 BSCFD in 2002, Kompas reported on Tuesday.

Upstream authority BP Migas said that the increase in demand would not only come from both industrial and household buyers but also from public transportation companies.

The agency?s chairman Rachmat Soedibjo said that the government was preparing five main scenarios in meeting the sharp increase in the demand. The steps include:

- to speed up the exploration activities in some potential gas fields in the province;

- to speed up the process of negotiations between producers and industrial users such as state electricity company PLN, gas distribution company PGN and fertilizer producers;

- to connect the East Java province with the inter island gas pipelines such as those linking West Java and South Sumatra;

- to build liquefied natural gas (LNG) terminals so that the province will be able to receive LNG from other provinces;

- to create better conducive investment climate so that more companies are interested in entering gas production activities. (*)