Saka: Production at Fasken shale gas block jumps five-fold

PT Saka Energi Indonesia, a subsidiary of IDX-listed gas distribution company PT Perusahaan Gas Negara (PGN) Tbk, said that output at the Fasken shale gas field in Texas, US, has jumped to 154 mmscfd from 30 mmscfd in July 2014 when the company has just acquired interest in the block.

Saka said in a statement issued by PGN Wednesday that output until end of this year is expected to further increase to 190 mmscfd.

?We?re grateful that the performance of the Fasken block has been in line with projection. The shale gas production which has increased by five-fold since the block started production proves that this strategic decision (to invest in Fasken) is positive for the company,? said Saka Energi Director of Operation Tumbur Parlindungan in the statement.

Saka last year set up a joint venture with US-based Swift Energy, in which the former holds 36 percent sake and the latter 64%, to develop the Fasken shale gas block, which is estimated to have shale gas reserves of about 1 trillion cubic feet.

Elsewhere, Saka said that gas pipeline infrastructure supporting the Fasken field has a capacity of up to 250 MMSCD, while output dedicated for export can be made via LNG plant in Texas. Tumbur hopes that Saka?s investment in Fasken would help strengthen Indonesia?s gas supply security.

Editing by Reiner Simanjuntak