SKK Migas to hold flare gas tender in July
Thursday, May 18 2017 - 05:59 AM WIB
Petromindo
Upstream oil and gas authority SKK Migas plans to start offering flare gas potentials in the country through a planned tender in July of this year following the recent introduction of a ministerial regulation on flare gas utilization.
Deputy for Procurement at SKK Migas, Djoko Siswanto told Petromindo.com on Thursday that his office will coordinate with the Directorate General of Oil and Gas at the Ministry of Energy and Mineral Resources in determining the location of the flare gas potentials as well as their prices.
?We plan to hold tender in July 2017. We?ll publish the location of the flare gas potentials,? he said.
Meanwhile, Director General of Oil and Gas IGN Wiratmaja Puja said that the flare gas will be converted into CNG, not transmitted via pipeline as the flare gas are scattered in remote regions, which make it uneconomical if transmitted via pipeline.
As has been earlier reported, Minister of Energy and Mineral Resources Ignasius Jonan has issued Ministerial Regulation No 32/2017 on the utilization and selling price of flare gas in upstream oil and gas activities.
According to a copy of the regulation, obtained by Petromindo.com, the flare gas can be used for power generation, pipeline gas for industries/households, compressed natural gas, LPG, and dimethyl ether production, or other purposes.
Upstream authority SKK Migas will offer the flare gas potential to the buyers by publishing data on flare gas potential of the upstream oil and gas contractors.
Editing by Reiner Simanjuntak