Gas demand in Java to jump to 2.48 BCFD in 2009: BP Migas

Gas demand in Java (the country's most populated island) is projected to soar to 2.48 billion standard cubic feet per day (BSCFD) in 2009 from 1.48 BSCFD last year, according to Rachmat Soedibjo, head of the BP Migas, the country's upstream oil and gas authority.

Speaking at a hearing session with the House of Representatives Commission VIII on oil and energy, Rachmat said that the gas demand could further mutiply to between 2.8 BSCFD and 3.3 BSCFD in 2013.

"Most of the gas will be used for power generation and industry, only a small portion will be allocated to the transportation sector," he said.

He added that the strong gas demand would mainly come from the East Java and West Java provinces.

He pointed out that in West Java, gas demand has increased by almost 50 percent to 413 MMSCFD in 2002 from 276 MMSCFD in 1999.

"With additional demand from PGN (state-owned gas distribution firm), Muara Karang power plant, and fertilizer firm PT Pupuk Kujang, the gas need has increased drastically to 751 MMSCFD starting 2003 and will continue to increase beyond 1000 MMSCFD in 2006," he said.

Rachmat explained that the drastic increase in the gas demand in West Java could no longer be fulfilled by existing capacity of gas fields in the province.

He said West Java needed additional supply of 90 MMSCFD of gas from the Sumatra region starting this year, and the extra supply need will continue to increase to 346 MMSCFD by 2008. "The development of the Sumatra-Java gas pipeline will play a key role for the supply."

Rachmat said that gas demand in East Java was projected to increase to 573 MMSCFD in 2007 from 424 MMSCFD in 2002. He said that so far demand in the province mainly came from power plants, PGN and chemical firm Petrokimia.

But he said that the supply of existing gas fields in the province dropped drastically during the 2002-2003 period (from 390 MMSCFD to 290 MMSCFD).

He said that additional supply from new fields (Amerada Hess, Santos and Kodeco) would only increase production level to 334 MMSCFD in 2004.

"The crisis of supply in East Java probably can only be completely resolved in 2006 if other fields are immediately developed," he said, pointing out as an example that the Terang Sirasun field could provide additional supply of 300 MMSCFD.

Elsewhere, Rachmat said that in a bid to anticipate the rising gas demand and looming supply problem, BP Migas had tried to accelerate the development new gas fields; accelerate the signing of gas purchase contract between sellers (production sharing contractors) and buyers (like PGN, fertilizer firms, and state-owned electricity firm PLN); and intensified coordination efforts with other government institutions in relation to the development of gas pipeline connecting South Sumatra and West Java (Godang)

Gas Supply to Java
Source Area	Volume (MMSCFD)	Year
South Sumatra
Pertamina Prabumulih	250	2006
Suban Phase II - ConocoPhillips	400 - 600	2006
West Java
Subang - Pertamina Cirebon	100	2004
South East Sumatra CNOOC	60 - 100	2005
BP West Java	70	2005
Central Java
Kepodang BP	100-150	2006
Randu Blatung Pertamina	150	2005
East Java
Lapindo Brantas	80 - 100	2003 - 2007
Pagerungan BP	150 - 175	Producing
Kodeco	100	Producing
Ujung Pangkah - Amerada Hess	100	2005
Oyong - Santos	40	2006
Maleo - Santos	100	2006