Six gas deals for local market signed

Upstream authority SKK Migas Chairman Amien Sunaryadi said that 6 agreements on the sale and purchase of gas (PJBG) for domestic buyers were signed in Nusa Dua, Bali, on Tuesday.

?The six deals have the potential to increase state income by US$ 587 million or around Rp 7.86 trillion," Amien Sunaryadi said after witnessing the signing ceremony, which was held in conjunction with the opening of the Asia Pacific Oil and Gas Conference and Exhibition (APOGCE) in Nusa Dua, Bali, on Tuesday.

The six signed contracts consist of three contracts for power plants, two contracts for industries, and one for LPG. The first of the 3 contracts for power was signed by PetroChina International Jabung Ltd and PT. Perusahaan Listrik Negara (PLN) Batam for 7 years and 3 months, with a gas supply at between 10 and 17 billion British thermal unit per day (bbtud). This contract will add state income by US$ 323.9 million or about Rp 4.34 trillion.

The second contract was signed by Energy Equity Epic (Sengkang) Pty Ltd and South Sulawesi regional owned company (BUMD) for 4 years and supply at between 40 and 68 bbtud. It will contribute state income at US$ 176.77 million or around Rp 2.37 trillion.

The third contract is an amendment of PJBG between PT. Pertamina EP and PT. Pura Daya Prima for 4 years, and supply at 3.8 mmscfd. It will add state income by US$ 7.2 million or Rp 96.5 billion.

The two contracts for industries were signed by JOB Pertamina-PetroChina East Java and PT. Gresik Migas, and another one, flare gas contract, by PT. Pertamina EP and holding company PT Pertamina. The former will be for 4 years, with supply at 1,2-3,2 mmscfd, and state income at US$ 6.9 million or around Rp 93 billion. The latter one will be for 5 years, with supply at 3-8 mmscfd, and state income at US$ 4.2 million or around Rp 56 billion.

The last one for LPG was signed between ConocoPhillips Indonesia and PT Pertamina to supply 230,000 tons of LPG per year for one year that is expected to add state income at US$ 68 million or around Rp 911.2 billion.

The upstream industry has been committed to increasing gas supply to the domestic market. Since 2003, gas supply for domestic market has increased at the average of 9 per cent per year. In 2013, the gas supply for local market exceeded the export. This year (2015), the commitment for domestic market is 4,403 bbtud or 61 per cent, while export at 2,836 bbtud.

Editing by Benget Besalicto ST.