PLN eyeing gas supply from Java gas block

By Febry Silaban

Petromindo|Khalsa

State electricity firm PT PLN (Persero) is in negotiation to buy gas from Pertamina EP-operated Jambaran Tiung Biru (JTB) gas project in Cepu, Central Java.

Pertamina?s Upstream Director Syamsu Alam said on Thursday that next week PLN and Pertamina CEO?s will meet to discuss gas price from JTB.

Syamsu said development of JTB will commence after gas buyer is secured.

Pertamina EP is expected to conclude acquisition of 45% interest in Jambaran field from ExxonMobil which will give the company 90% interest and operatorship of the gas block.

Jambaran is part of the giant Cepu block operated by ExxonMobil, in which Pertamina holds 45% interest, while Tiung Biru is 100 percent controlled by Pertamina EP. The Jambaran and Tiung biru fields are unitized to optimize the gas block?s development.

JTB is expected to start production in 2020 with initial production of 227MMCFD, ramping up to 315 MMCFD the following year. The block is estimated to hold reserves of 1.2TCF.

Editing by Alexander Ginting