Pertamina studies to promote gas use in East Java

Emboldened by a series of new gas findings in East Java, state oil and gas company Pertamina and its production sharing contractors (PSC) launched a study to promote the use of gas in the province, Pertamina said.

Pertamina's upstream director Gatot K. Wiroyudo said on Wednesday the new gas findings in East Java would make it possible for Pertamina and its PSCs to meet the ever growing industrial demand in the province.

"The study is expected to be finished in six months," Gatot said.

Gatot's statement came following reports that British firm Premier Oil and partners had found some 450 billion cubic feet (BCF) of gas in Ujung Pangkah, offshore East Java.

It is the latest of a series of gas findings made in the province from last year.

According to Gatot, last year Pertamina had found some 500 BCF of gas in Kedung Tuban onshore East Java, followed by another finding of between 200 and 400 BCF in Suci.

Recently, said Gatot, American energy giant Exxon Mobil had also found a significant oil and gas reserve in Cepu. However, the amount of the reserves is not yet known.

ExxonMobil had also some 500 BCF of gas reserves offshore the Kambing island, Gatot said.

Currently gas supply to East Java stands at 350 million cubic feet per day (MMCFD) from Anglo-American firm BP's (Beyond Petroleum) gas fields in the Pagerungan island and South Korean firm Kodeco's gas field offshore the Madura island.

Gas consumers in the province is are state electricity company PT PLN, state fertilizer firm PT Petrokima Gresik and state gas distributor PT PGN. (Alex)