Gas from TSB fields to flow in full capacity in 3 days
Tuesday, May 29 2012 - 02:42 AM WIB
Upstream authority BPMIGAS expects contracted buyers of gas from the Kangean PSC block's Terang, Sirasun and Batur (TSB) fields to be ready to receive the gas in full capacity within the next three days.
?The gas from the TSB fields is still undergoing a test acceptance today. It will take about 72 hours. If it passes the test, then the gas can flow in full capacity of 300 mmscfd. That means buyers must be ready to pay up in line with their contract,? BPMIGAS Deputy of Operation Rudi Rubiandini told petromindo.com.
Kangean PSC is located in East Java, where its main buyers are located. They include state owned utility firm PT PLN, petrochemical producer PT Petrokimia Gresik, state owned gas distributor PT PGN and a Pertamina unit, PT Pertagas.
Not all buyers are ready so far today to receive the gas in full capacity, according to an industry source. ?PGN is not yet ready, neither is PLN. If this remains the case when the gas starts flowing, then a take-or-pay sanction will be applied to them. Gas supply to East Java is ready but not all buyers are 100 percent ready,? the source told petromindo.com.
However, PLN Head of Oil and Gas Fuels Division M.Suryadi Mardjoeki said PLN has in fact been absorbing more gas than its contractual obligation. ?During commissioning, PLN absorbed 200 mmscfd, in part because of BPMIGAS request as Pertagas was unable to fulfill its 100 mmscfd contract. Pertagas had planned to sell the gas to a trader which would then sell it again to us, but PLN had rejected the getting the gas through trader.?
PLN has a contract of 130 mmscfd from Kangean. The PSC is operated by Kangean Energy Indonesia Limited. Kangean PSC is 50 percent owned indirectly by PT Energi Mega Persada, 25 percent owned by the Mitsubishi Corporation (Japan), and 25 percent owned by the JAPEX (Japan).
Editing by Dadan Wijaksana