SKK Migas: No need for LNG import yet

Petromindo

Upstream authority SKK Migas said that the country is unlikely to import LNG within the next couple of years despite recent new regulation allowing the import of LNG for power plants.

Bisnis Indonesia quoted upstream oil and authority SKK Migas Spokesman Taslim Z. Yunus as saying Friday that gas production from existing fields at home are still sufficient to meet demands from power plants and manufacturing industries.

He added that domestic gas infrastructure facilities such as storage and regasification facilities are still limited to allow for LNG import. He pointed out that currently there are only four of such facilities in the country including one in Benoa, Bali, with capacity of 50 mmscfd (owned by PT Pembangkitan Jawa Bali), in Lampung owned by PT PGN Tbk with capacity of 240 mmscfd, in Arun, Aceh, owned by PT Pertamina, and another one in West Java, with capacity of 400 mmscfd owned by PT Nusantara Regas.

?Until 2019, it is not the time yet to make import (of LNG). In terms of regasification, it is still limited. So if in the near term there?s no increase in regasification capacity, import can?t be made,? he said.

Taslim added that to date there are 28 LNG cargoes from Bontang LNG plant in East Kalimantan that have not been absorbed yet, and another 4 cargoes of LNG from Tangguh plant in West Papua.

He also said that plans of development of a number of gas field projects such as Kasuri field in Papua has yet to be approved because the project has yet to obtain buyers. The project is targeted to produce 235 bbtud of gas in 2019.

Minister of Energy and Mineral Resources Ignasius Jonan said last month he has signed a new regulation allowing the import of LNG by state-owned electricity firm PT PLN and independent power producers. The power producers are expected to be able to get cheaper gas through import of cheap LNG particularly from the Middle East. (*)