PLN considers Jangkrik gas

By Godang Sitompul

State utility firm PT Perusahaan Listrik Negara (PLN) is strongly considering buying gas from Jangkrik field within the Muara Bakau block in Makassar Strait to supply its Tanjung Priok and Muara Karang power plants in 2017 to make up for the estimated supply shortfall from Bontang LNG facility.

Head of Oil and Gas Fuel Division Suryadi Mardjoeki told Petromindo.com that the gas from Eni could be delivered via the West Java FSRU.

"At the minimum, we will have to find 12 cargoes of LNG. If Jangkrik can do it, we'll take it. If it cannot, then we'll have to import," said Suryadi, adding that there is a lingering uncertainty over the gas supply from Bontang in 2017 and beyond amid the government's indecisiveness in who's going to manage the Mahakam block, Bontang's main supplier, after the current contract expires in 2017.

He further explained that in 2019, PLN will need at least 50 cargoes for Java. It expects Tangguh to supply 24 cargoes, assuming the operation of Train 3 and perhaps Train 4. "Bontang will supply much less than that, due to the contract issue which could exacerbate natural production decline (of Mahakam). Let's say from Tangguh and Bontang we could get 40 cargoes, that means we'll still have to look for another 10 to 12 cargoes." Suryadi said.

Italy's Eni currently holds a 55 percent stake in the Jangkrik field with the remaining stake held by French GDF Suez. The field is expected to produce 145.5 mmscfd of natural gas. At least 40 percent of the LNG produced at the Jangkrik field is planned to be allocated for domestic needs.

Editing by Dadan Wijaksana