First Jangkrik LNG delivered to Bali Terminal

The first LNG cargo from the Jangkrik field within the Muara Bakau block in Indonesia has been delivered to the Tanjung Benoa regasification terminal in Bali from the LNG Bontang refinery in East Kalimantan, according to SKK Migas, Indonesia’s oil and gas regulator. The delivery is part of a long-term contract with state-owned Indonesian oil and gas giant Pertamina.

Eni announced last week that a 22,500m³ cargo of LNG had set sail from Bontang to Bali.

SKK Migas Special Task Force deputy chairman Sukandar said that a majority of the gas produced from the Muara Bakau field would be prioritised for fertilizer factories and other domestic industries where it was needed.

“The fulfillment of demand is also proof that the upstream oil and gas industry completely supports the government’s program to maintain food and energy security in Indonesia,” he said in a press release on June 23. In addition to fertilizer plants, the LNG will also be used to help support the power sector to ensure that those in eastern Indonesia have access to electricity.

Indonesia, with a population of 253mn, is the most populous country in southeast Asia and the fourth most populous country in the world. It is facing hard decisions as its oil and natural gas production continues to fall short of meeting domestic demand and investment in the sector drops, falling 4.1% year-on-year to $2.57bn in Q1 2017, according to a report last month by Invest Indonesia. BMI Research said earlier this month that the country could become a net gas importer by 2022.

Tim Daiss