Govt to increase allocation of IDD gas for domestic market
Tuesday, May 19 2015 - 01:03 PM WIB
The government is seeking to increase the allocation of gas to be produced from Chevron Indonesia Co.-operated Indonesia Deepwater Development (IDD) gas project offshore East Kalimantan to domestic market, according to an official of upstream authority SKK Migas.
?In the gas balance, the domestic allocation from IDD is about 25 percent, but we are still working to increase the domestic allocation," Head of Gas Commerce Division at SKK Migas Arief Riyanto told Petromindo.com.
However, if the domestic prices are not good, the gas will still be exported, "because the cost of the development of IDD offshore project is very high,? he said, hoping that the IDD project will come onstream in 2022.
According to an earlier estimate, the IDD project will produce 1,270 mmscfd of gas once it has come into full operation
Editing by Johannes Simbolon