PGN, Inti Alasindo absorb gas from BD field
Friday, September 22 2017 - 07:14 AM WIB
IDX-listed gas distribution firm PT PGN Tbk and privately-held PT Inti Alasindo Energy are the two off takers of gas from the BD field project, in Madura Strait block, offshore East Java.
A source told Petromindo.com on Friday that PGN will absorb 60 mmscfd of gas from the liquid-rich BD field project operated by Husky-CNOOC Madura Ltd (HCML), while Inti Alasindo 40 mmscfd.
Gas for PGN started flowing on July 26 to support industries in East Java Province, while gas for Inti Alasindo is expected to start flowing around early 2018.
?Currently, gas absorption (by PGN) is around 35-40 mmscfd,? the source said, adding that the gas flow from the BD field to the two buyers will be made until the end of the production sharing contract of the Madura Strait block in 2032.
Deputy Minister of Energy and Mineral Resources Arcandra Tahar inaugurated on Wednesday the BD field project and the floating production, storage and offloading (FPSO) vessel, called Karapan Armada Sterling III.
Arcandra said that the BD field project will reach gas production peak of 100 mmscfd of gas and 7,000 barrels per day of condensates. Gas absorption rate currently stands at 30-40 mmscfd, and condensates at 3,000 bpd.
?Production will increase gradually. It is expected that production peak will be reached in early 2018,? he said.
Upstream oil and gas authority SKK Migas said that the fields in the Madura Strait block are old fields which are expected to produce a combined 441 bcf of natural gas and 18.7 mmbl of condensates for 13 years.
Editing by Reiner Simanjuntak