Japan, S. Korea, Taiwan may buy LNG from Jangkrik field

Japan, South Korea and Taiwan the traditional buyers of Indonesian liquefied natural gas (LNG) are all likely to purchase natural gas from the Jangkrik Northeast offshore gas field in Makassar Strait, operated by Italian oil and gas company Eni.

The country?s interim upstream authority SKK Migas commercial control deputy, Widhyawan Prawiraatmadja, told The Jakarta Post on Thursday that the regulator was currently overseeing ongoing discussions between Eni and potential buyers of gas from the Jangkrik field.

SKK Migas expected Eni to conclude the heads of agreement with the potential gas buyers in order for the contractor to wrap up its final investment decisions for the Jangkrik field, said Widhyawan.

The government, he added, is expected to give their consent to the Jangkrik LNG exports after Eni submitted the agreements.

Eni currently holds a 55 percent stake in the Jangkrik field located in Muara Bakau block, Makassar Strait with the remaining stake held by French GDF Suez.

The plan of development (POD) II for the Jangkrik project was approved by SKK Migas in February.

The field is expected to produce 145.5 million metric standard cubic feet per day (mmscfd) of natural gas, which will be processed into LNG at the Bontang plant in East Kalimantan, according to SKK Migas data.

At least 40 percent of the LNG produced from the Jangkrik field is planned to be allocated for domestic needs particularly for the fertilizer-making industry.(*)