Minister holds groundbreaking for JTB gas processing facility
Monday, September 25 2017 - 06:28 AM WIB
Petromindo|Godang
Minister of Energy and Mineral Resources Ignasius Jonan led on Monday groundbreaking ceremony to officially start construction of a gas processing facility (GPF) at the Jambaran Tiung Biru (JTB) gas development project in Bojonegoro, East Java Province.
The facility will have production capacity of 330 mmscfd, and is targeted to start production at the end of 2020, Jonan said.
?It is projected that state revenue from this project until end of contract in 2035 to reach US$3.61 billion,? he said.
He explained that the entire gas output will be allocated for domestic market including 100 mmscfd for state-owned oil and gas firm PT Pertamina, which will then distribute the gas to an 800 MW gas-fired power plant in Gresik, East Java, owned by state-owned electricity firm PT PLN, and 72 mmscfd for industries in Central and East Java.
According to a ministry statement, investment requirement for the gas processing facility is estimated at US$3.46 billion excluding the cost for developing a 267 km gas pipeline linking Gresik in East Java and Semarang in Central Java, which will cost another $515 million.
Gas production from six wells at the JTB field will be processed at the GPF with average production rate of 315 mmscfd. The GPF will separate the CO2 and H2S contents to produce saleable gas at a volume of 172 mmscfd. The gas will be distributed via the Gresik-Semarang pipeline, to be developed by Pertamina Gas.
Pertamina EP Cepu is the operator of the JTB project with interest of 45 percent, while the remaining 20.5 percent is held by Mobil Cepu Ltd, 24.5 percent by Ampolex Cepu, and 10 percent by companies owned by local administrations.
Editing by Reiner Simanjuntak