RI unlikely to import gas in 2019

Indonesia is unlikely to import gas in 2019 amid slower than previously projected demand and stronger production particularly from Eni?s Jangkrik field project.

Based on the Indonesia Natural Gas Balance data, the government previously anticipated that the country would have to make gas import in 2019 to meet growing domestic demand.

But Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, IGN Wiratmaja Puja said that import would not be necessary as gas production from the Jangkrik project can be increased to 600 mmscfd from the initial plan of 450 mmscfd.

?Production from the Jangkrik project turns out to be quite good. While the initial design capacity was set up to 450 mmscfd, following test it could reach 600 mmscfd. So, there?s strong possibility that in 2019, (Indonesia) does not need to make import,? he said following opening ceremony of the Gas Indonesia Summit 2017 in Jakarta on Wednesday.

Minister of Energy and Mineral Resources Ignasius Jonan said last month that production capacity of the Jangkrik floating production unit (FPU), which processes gas from the Jangkrik and Jangkrik North East fields in Muara Bakau block, East Kalimantan, can be expanded beyond its designed capacity of 450 mmscfd to reach 600 mmscfd with additional gas output from nearby Merakes field in the East Sepinggan block

Both the Muara Bakau and East Sepinggan blocks are operated by Italian firm Eni. The Jangkrik FPU, also operated by Eni, started gas production in May

Wiratmaja said that domestic gas demand in 2019 will not be as strong as initially anticipated amid expected delay in the completion of gas-fired power plant projects under the government?s 35,000 MW power plant development program.

Beyond 2019, Indonesia also won?t have to import gas to meet demand amid additional gas output from BP?s Tangguh LNG train 3 project, in West Papua, expected to be on-stream in 2020, and from Inpex Corp?s Masela block project in Maluku, projected to start production in 2025-2027, Wiratmaja said.

Editing by Reiner Simanjuntak