SKK Migas chief inaugurates operation of PGDP gas facility

Petromindo

Upstream oil and gas authority SKK Migas Head Amien Sunaryadi inaugurated on Wednesday operation of the Paku Gajah Development Project (PGDP) gas production facility in South Sumatra Province.

Operated by upstream company PT Pertamina EP (PEP), PGDP is an integration of existing gas production facilities, namely the SPG Paku Gajah gas collection station with production capacity of 45 mmscfd, the SPG Kuang with production capacity of 25 mmscfd, and other supporting facilities.

Completed in July of this year, the US$145.10 million investment PGDP will allow PEP to accelerate the monetization of assets so that exploration potential in the Pagardewa, Karangdewa, Prabumenang, Tasim, Pemaat, Kuang Selatan, Lavatera, and Pireterium structures can be produced economically, the company said in a statement.

Amien said in his remarks that the Paku Gajah project is important to help meet growing gas demand in South Sumatra and to help accelerate economic development in the region.

PEP President Director Nanang Abdul Manaf said that gas demand in the southern part of Sumatra is quite high. Citing data from the downstream oil and gas authority BPH Migas, total gas demand in South Sumatra this year is estimated at 1,013.9 mmscfd, comprising of committed demand of 353.2 mmscfd, allocated demand of 330.7 mmscfd, and potential demand of around 330 mmscfd allocated for power plants operated by state-owned electricity firm PT PLN and independent power producers as well as gas for households consumption.

?To meet the quite huge gas market demand in South Sumatra, and extend the production period (plateau), we develop oil and gas fields integrally around the Paku Gaja area through exploration drilling and the development of PGDP,? Nanang said.

Editing by Reiner Simanjuntak