Pertamina sign gas supplies from Jangkrik, Mahakam, and DSLNG

State owned oil and gas firms PT Pertamina (Persero) signed on Tuesday three agreements to purchase gas in the form of LNG from the Jangkrik fields in Muara Bakau PSC, Mahakam PSC, both in East Kalimantan; and PT Donggi Senoro LNG plant in Central Sulawesi

The first Gas Sales Purchasing Agreement (GSPA) was signed with Eni Muara Bakau, an affiliate of Italian firm Eni Spa, the operator of Muara Bakau PSC for the supply of 1.4 mtpa of LNG over a period of seven years starting in 2017, the time the project is scheduled to come onstream.

The volume is larger than the Domestic Market Obligation (DMO) volume set in Muara Bakau PSC. The gas is expected to be used to support Pertamina?s refinery projects, industrial demand in North Sumatra and West Java, as well power generation needs in West Java.

The second GSPA was signed with the operator of Mahakam for the supply of 660 tons of gas until the end of this year. The gas will be used to meet the fuel needs of mining and commercial sector in East Kalimantan.

Pertamina started a pilot project to promote the use of LNG for transportation sector in East Kalimantan to persuade mining companies there to use LNG rather than oil fuels in their transportation fleet. During the pilot project, the LNG was supplied to coal mining companies PT Berau Coal and PT Indominco Mandiri. Today, the firm and affiliates have built 26 LNG filling stations in Bontang whence the LNG will be carried to customers such as PT Cipta Kridatama, Rukun Raharja (Balcony), Thiess and Balikpapan Superblock using 20 cubic meter LNG Iso tanks

The third GSPA was signed with DSLGN for one cargo of LNG to be delivered to Pertamina?s Arun Storage & Regassification Terminal in Aceh. The LNG is scheduled to be delivered in early August, the time the new LNG plant project is scheduled to start up.

Editing by Johannes Simbolon