Jangkrik project to start LNG shipment next month
Friday, May 26 2017 - 04:27 AM WIB
Two cargoes of LNG from the Jangkrik Development Project are expected to be shipped to domestic buyers in the middle of June following maiden gas production from the project mid this month, according to upstream authority SKK Migas.
SKK Migas Head of LNG Marketing Division, Rayendra Siddik, however, said that the LNG cargoes have yet to find definitive buyers. He told Petromindo.com on Friday that upstream authority will try to find domestic buyers to absorb the LNG output although the current domestic demand has already been fully fulfilled.
?The (shipment) schedule is mid-June 2017. The destination has yet to be ascertained ? but we?re trying to be allocated for domestic market, although the domestic market (demand) has been fulfilled,? Rayendra said.
Italian firm Eni announced on May 15 it has started gas production from the Jangkrik Development Project, in deep water offshore Indonesia, ahead of schedule. The Project comprises the gas fields Jangkrik and Jangkrik North East, located in the Muara Bakau block, Kutei basin, in the deep water of Makassar Strait.
The company said that production from ten deep-water subsea wells, connected to the newly built Floating Production Unit (FPU) ?Jangkrik?, will gradually reach 450 million standard cubic feet per day (mmscf/d), equivalent to 83,000 barrels of oil equivalent per day (boed). The gas, once processed onboard the FPU, will flow via a dedicated 79km pipeline to the Onshore Receiving Facility, both built by Eni, and then through the East Kalimantan Transportation System, finally reaching the Bontang gas liquefaction plant. Gas volumes from Jangkrik will supply the local domestic market as well as the LNG export market.
Eni is the operator with a 55 percent stake of the Muara Bakau PSC through its subsidiary Eni Muara Bakau B.V. The other partners are ENGIE E&P (through its subsidiary GDF SUEZ Exploration Indonesia BV) with 33.334 percent and PT. Saka Energi Muara Bakau with 11.666 percent.
Editing by Reiner Simanjuntak