Rachmat says E. Java may experience gas shortage until 2006

East Java will likely continue to experience natural gas shortage until 2006 because supply from contractors which have expressed interest to sell the commodity to the province would be less than area demand, Implementing Body (BPMigas) chairman Rachmat Soedibjo said on Friday.

Rachmat said East Java?s demand for natural gas would be fully met if BP Indonesia?s Terang Sirasun gas field could start production in 2006 as the firm had expected. The government has yet to decide whether to fulfill BP?s request to extend its contract for Kangean Block where Terang Sirasun is located. The contract will expire in 2010.

Rachmat said BP Indonesia, which has preferential rights to supply natural gas to the area, presently could supply to East Java only about 200 million cubic feet per day (MMCFD) of gas.

East Java?s total demand for gas presently reaches 400 MMCFD, Rachmat said.

Meanwhile, earlier reports said two other and gas production sharing contractors which operate offshore gas fields in East Java, Kodeco, and Lapindo Brantas, had respectively pledged some 60 MMCFD and 100 MMCFD of gas for the province. Other gas producers like Amerada Hess, Mobil Cepu and Exspan Nusantara had also expressed interest to supply gas to East Java.

Rachmat said he and other senior government officials had planned to meet on Saturday (today) with gas producers to make final decision on the exact volumes of gas they could supply to East Java.

East Java has experienced acute natural gas shortage over the past months after gas supply from BP?s Pagerungan field on the Kangean Block continued to drop due to reserve depletion. (godang)