National gas balance completed

The Ministry of Energy and Mineral Resources has finished formulating the so-called ?gas balance? that highlight among others the needs and production of gas in each region of the country and the amount of gas that can be exported.

?The gas balance has been completed and needs only to be signed by the Minister (of Energy and Mineral Resources),? Director General of Oil and Gas Evita Legowo told reporters on Tuesday.

Evita said the country has actually a gas balance sheet but it only covers domestic gas demand and production until 2015. The new balance sheet will cover demand and production until 2020.

?It does not however cover (potential) coal bed methane (CBM) output. The draft gas balance was made in November 2008 and discussions on it were completed in December 2008. Meanwhile, we start awarding CBM contracts in 2009,? Evita said.

The making of the gas balance sheet was first called for by Vice President Jusuf Kalla in 2006, the time when Japan pressured Indonesia to extend its LNG exports contracts with the country. Kalla insisted the government should prioritize the domestic market and can only export the gas if gas supplies for the domestic market have been secured.

Jusuf recently voiced opposition to the plan of building the Donggi Senoro LNG terminal in Central Sulawesi, which is expected to export its entire product to Japan. He said he would not approve of the plan until after Indonesia has completed a gas balance sheet and the balance sheet indicates that security of gas supplies to the domestic market would not be disturbed by the LNG exports to Japan. (Godang)