Indonesia to Prioritize Gas This Year

Indonesia is expected to dedicate most of its resources to developing several key upstream and downstream gas projects amid rapidly rising demand.

The strategy is part of the Energy and Mineral Resources Ministry’s 2013 strategic plan in which projects related to gas will dominate the country’s energy sector until 2018, Jakarta Post said in a report. The newspaper said that the country will prioritize three gas projects this year, developed separately by France-based Total E&P Indonesie, ConocoPhillips Indonesia and Australia-based Pearl Oil. 

Total’s project will involve the enhanced development of the South Mahakam field in East Kalimantan, expected to generate 202 million standard cubic feet per day (mmscfd). The gas will be delivered to the nearby Bontang liquefied natural gas (LNG) plant. 

Pearl Oil is expected pump 50 mmscfd of gas from its Ruby field in Sebuku Island in East Kalimantan. Conoco is slated to contribute 40 million mmscfd from the Sumpal field in South Sumatra. Output from the field will be delivered to Gas Supply Pte Ltd. (GSPL) Singapore as part of the firm’s supply contract. 

“We’re expecting these new projects to be ready this year, and will soon contribute to higher production,” the newspaper quoted SKMigas spokesman Hadi Prasetyo as saying. 

Gas supply for the domestic market is estimated to grow by 9 percent this year to 4,020 billion British thermal units per day (BBTUD) from 3,615 billion BBTUD.