Singapore reduces gas purchasing from Sumatra

By Bernard Loebs

Singapore has cut its gas purchasing from Sumatra following the completion of its LNG regasification facilities, upstream authority SKK Migas said.

Previously, Singapore always took the maximum volume of gas that Corridor block in central Sumatra can supply, that is 380 mmscfd. Today, however, the country only takes the Take or Pay volume as stated in the contract, that is 92 percent of the maximum volume, Zudaldi Rafdi, Head of Compliance Supervision Working Group at SKK Migas said.

Around 30 mmscfd of gas production from the block is now channeled to meet the domestic consumers in Sumatra, Zudaldi said.

?It is thus not true that Singapore has stopped taking gas from Sumatra,? he said, adding the contract with Singapore is effective until 2020.

The Corridor PSC located onshore South Sumatera. The PSC operated by ConocoPhillips (Grissik) Ltd. With a 54 percent working interest, in partnership with Talisman (Corridor) Ltd (36 percent) and PT PHE Corridor (10 percent).

The gas from Corridor is channeled through pipelines to Singapore. Singapore has built regasification facilities to enable it accept LNG from around the world and reduce its dependence on pipelined gas from Indonesia.

Editing by Johannes Simbolon