PT Energi Sengkang plans to explore new gas field in S. Sulawesi

PT Energy Sengakawang plans to explore a new gas field in Kampung Baru village, Wajo regency, Sengkawang, South Sulawesi beginning July, this year. The company will allocate about US$3 million in investment to finance the exploration activities, Bisnis Indonesia reported on Tuesday.

Paul Edwards, the president of PT Energi Sengakawang, said in Makassar on Monday that the natural gas to be produced from the new field would be used to supply power plants, fertilizer and liquefied natural gas (LNG) producers.

?The exploration activities will be carried in two years with a depth of up to 400 kilometers. After that, a feasibility study would be made to ensure if the new gas field is economically sound for further development,? he was quoted as saying.

PT Energi Sengkang is a company jointly owned by PT Trihasra Sarana Jaya Purnama, Energy Equity Corporation Ltd. From Australia and El Paso Energy from the United States.

Edwards said they expect the gas field?s reserve to reach 500 million sq. meters.

So far, PT Energi Sengkang has excavated gas from three fields in the area with their combined potential reserves reaching 400 million sq. meters. ?This volumes could be used for reserve power plants in South Sulawesi for 15-20 years.?

The company had initially invested $40 million for the Sengkang fields, and their gas had been used for a power plant with capacity of 85 MW. The project started operation in 1997.

The Kampung Baru gas field has three wells, and its gas is channeled to the Sengkang gas power plant through 29-kilometer pipeline.

PT Energi Sengkang also supports the development and the operation of an additional 50-MW heat recovery steam generator and steam turbine which turn gas power plant into combined cycle plant with capacity of 135 MW. (*)