Jakarta allocates gas from Akatara field to state utility
Southeast Asia-focused Jadestone Energy on July 6 said Indonesia’s ministry of mines and energy through a decree had allocated gas supply from its Akatara gas field, onshore Indonesia, to national electricity utility Perusahaan Listrik Negara (PLN).
The ministerial decree facilitates the development and commercialisation of the Akatara gas field and also the associated production and sales of LPG to the local domestic market in Jambi, together with condensate sales to a local buyer, the company said.
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Jadestone acquired 90% interest in the Lemang PSC in December last year. The Lemang PSC contains the Akatara gas field, previously developed as an oil asset but assessed to hold 115bn ft3 of best-estimate wet gas in place. The remaining 10% of the contract is held by Hexindo Gemilang Jaya.
The company also signed a heads of agreement (HoA) with PLN on the gas supplies. “A fully termed gas sales agreement will now be progressed, with negotiations underway,” it added.
The ministerial decree and HoA specify a gross sales volume of 20bn Btu/d starting in Q1 2024 and a plant gate sales price of $5.60/mn Btu, at a delivery point approximately 17 km from the field. Indonesia’s upstream regulator, SKK Migas, has approved the HoA, Jadestone said.