SKK MIGAS increases gas supply for PLN

Upstream authority SKK Migas has agreed to allocate the gas production of 25 MMSCFD from South Sembakung field of Simenggaris Block in East Kalimantan for the need of state utility PT Perusahaan Listrik Negara (PLN) to generate power in the region.

?We hope that the gas supply of 25 MMSCFD from South Sembakung field to PT PLN in East Kalimantan will further strengthen the energy security in the area, and create a multiplier effect for the local economy,? SKK Migas Chairman Rudi Rubiandini said in Jakarta on Monday (8th April 2013).

The gas supply from the South Sembakung field, which is operated by JOB Pertamina ? Medco Simenggaris, will start to be channeled to PLN since the end of this year (2013). Initially, the volume will be just 5 MMSCFD, but later in stages it will be increased up to 25 MMSCFD by the year 2016. The gas supply contract will last until 11 years.

In its gas allocation approval for PLN in East Kalimantan, SKK Migas has also agreed on the involvement of local administration firms (BUMD) in the project. ?We want to see the involvement of state owned national firms (BUMN) or local administration firms (BUMD) in such project. In the case of East Kalimantan, we?ve agreed that the Nunukan BUMD involves in the gas supply project. Of the total supply of 25 MMSCFD, about 5 MMSCFD supply will be channeled by the Nunukan BUMD,? he said.

Previously, SKK Migas has also approved the allocation of gas from the liquefied natural gas (LNG) plant in Tangguh, West Papua, to fertilizer firm PT Pupuk Iskandar Muda (PIM) in Aceh as part of its efforts to also strengthen the national food security.

SKK Migas stated that it will continue to increase the gas supply for the local need?power, fertilizer, and other industries. The gas supply for the local market has been steadily increasing since 2001. Until now the gas supply increase for the local market has climbed by 250 percent since 2001.

Based on government data on February 2013, the gas supply for industries has reached up to 10.33 trillion cubic feet, for power generation at 7.65 trillion cubic feet, and for fertilizer at 3.9 trillion cubic feet.

Next year, the government has planned to increase gas supply for fertilizer from 3.9 trillion cubic feet to 4 trillion cubic feet, power from 7.65 trillion cubic feet to 7.9 trillion cubic feet, and for industries from 10.33 trillion cubic feet to 10.75 trillion cubic feet.

Editing by Benget Besalicto Tnb.