Indonesia to offer gas from Gajah Baru field to Singapore
Thursday, September 29 2011 - 03:33 AM WIB
Once the contract renegotiation process with Singapore is completed, the supply for that country would not be reduced and there would be no change in prices. Only the source of the gas that would be different, he said.
?The change will be conducted under a swap mechanism. Singapore will get part of the gas supply from the Gajah Baru field, no longer from other fields in South Sumatra, while fields in South Sumatra that previously channeled gas to Singapore will deliver gas to domestic users,? he said on the sidelines of the 66th anniversary ceremony of the Indonesian mining and energy sector in Jakarta.
?We want the swap mechanism to run in October so we can deliver additional gas supply to Java, to electricity utility PT PLN and Singapore. We?re only waiting for the approval from the Energy and Mineral Resources Minister [Darwin Zahedy Saleh],? Priyono said.
He added that domestic gas users would get an additional supply of 80 mmscfd from the Grissik field in South Sumatra, operated by ConocoPhillips, that was previously allocated for Singapore.
ConocoPhilips produces around 1.000 mmscfd of gas. About 300 mmscfd is delivered to Singapore, 340 mmscfd to state gas distributor PT PGN, while the remaining 260 mmscfd is sent to PT Chevron Pacific Indonesia to support oil production activities there.
The Gajah Baru field is projected to produce 210 mmscfd starting in the fourth quarter of this year. The gas cannot be delivered to Java due to a lack of pipeline infrastructure, said the director general for oil and gas at the Energy and Mineral Resources Ministry, Evita Herawati Legowo.
Priyono also said that the additional supply from the swap mechanism would probably be delivered to PLN?s Muara Tawar power plant in West Java, which needs between 200 and 300 mmscfd of gas. At present, it only receives between 70 and 100 mmscfd from PGN?s South Sumatra-West Java (SSWJ) pipeline network. (*)