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ndonesia’s PT Perusahaan Listrik Negara (PLN) is set to receive a delivery of more natural gas by the end of this year to boost the state-owned utility firm’s power supply in East Kalimantan, a regulator has said.

The liquefied natural gas (LNG) would be delivered from the South Sembakung field in Simenggaris Block, East Kalimantan, starting in December this year, on an 11-year contract, the upstream oil and gas regulatory special task force SKKMigas chief Rudi Rubiandini said on Monday.

PT Medco E&P Indonesia, a subsidiary of publicly-listed energy firm PT Medco Energy International (MEDC), is the operator of the South Sembakung field along with state-run oil and gas firm PT Pertamina, under a joint operating body (JOB) scheme.

“We expect the gas supply, which will eventually reach around 25 million metric standard cubic feet per day [mmcsfd] from the South Sembakung field to PLN’s power unit in East Kalimantan, will create a multiplier effect for the improvement of the local economy,” said Rudi.

At least 5 mmcsfd of liquefied natural gas (LNG) would begin to be delivered in December this year, said Rudi, adding that the supply would be increased gradually until it reached 25 mmcsfd in 2016,

In addition, the regulator had also approved the involvement of the Nunukan regency-owned companies to received the benefits from the new gas supply.

Earlier, SKK Migas had also approved a second LNG delivery from the BP-operated Tangguh gas plant in Teluk Bintuni, West Papua, to state fertilizer company PT Pupuk Iskandar Muda (PIM), through a swap mechanism.

At least six LNG containers were expected to be delivered to PIM this year to meet the company’s gas demand.

The regulator’s data on Monday showed that industry players in Indonesia currently had the biggest share of the gas supply.

As of February this year, the industry sector had received 10.33 trillion cubic feet of natural gas, followed by the electricity sector that received 7.65 trillion cubic feet and fertilizer industry with 3.9 trillion cubic feet.