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tate-owned oil and gas company PT Pertamina is planning to develop more infrastructure to support gas deliveries to domestic buyers.

Pertamina senior vice president for gas and power Salis Aprilian said the firm was now working on plans to develop infrastructure in Cilamaya, West Java and Bojanegara, Banten.

'€œThe Cilamaya floating storage unit is in the final investment decision [FID] stage. In our feasibility studies, we have assessed various matters related to the planned Cilamaya Port,'€ Salis said.

He was referring to a plan to develop a port in Cilamaya, which is part of a program under the Master Plan for the Acceleration and Expansion of Indonesian Economic Development (MP3EI). The planned development of Cilamaya Port has recently jittered PHE ONWJ, Pertamina'€™s unit serving as a contractor for an oil block called the Offshore North West Java.

Meanwhile, Salis said, a feasibility study was being conducted for the development of gas infrastructure in Bojanegara.

'€œAs for Bojanegara, it will be a land-based plant, like we have in Arun [Aceh],'€ Salis added.

He declined to reveal the amount of investment needed for the plans.

Development of Cilamaya Port is expected within one year after the company kicks off construction of its floating storage unit in Cilacap, Central Java.

Pertamina is now working on the planned development of a floating storage and regasification unit (FSRU) in Cilacap. Pertamina director for gas Hari Karyuliarto said earlier that the Cilacap infrastructure would likely include a mini FSRU with a capacity of around 100 million standard cubic feet per day (mmsfcd).

Investment for the Cilacap FSRU will be between US$60 million and $100 million and will only be needed for an onshore receiving facility [ORF] as it will use a leased vessel, according to Hari.

Construction of the Cilacap FSRU is expected to kick off at the end of next year, according to Salis, and is expected to be in operation by mid-2017.

He added that the company was expecting gas supply from the country'€™s main gas producing areas, such as Tangguh in Papua, Bontang in Kalimantan and the Indonesia Deepwater Development (IDD) in the Makassar Strait.

Indonesia is estimated to have significant gas resources. The country is projected to have 104 trillion standard cubic feet (tscf) in proven and 48 tscf in potential gas reserves, making it the 13th-biggest owner of proven natural gas reserves in the world and the second-biggest in the Asia-Pacific region after China, according to the International Energy Agency.

However, due to poor infrastructure, most of the gas is sold overseas. Gas production in 2013 reached 6,869 mmscfd in 2013, of which 52 percent was sold overseas. The Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) has been calling for more deliveries to the domestic market and has targeted that 53.8 percent of total gas production this year will be consumed by domestic players.

Concerns have arisen that the country will see a lack gas supplies in the future on account of fields being exploited for export needs while development of new blocks, such as the IDD project, are delayed.

The Energy and Mineral Resources Ministry estimated that gas supply for Indonesia from existing fields will run out and the country will be in deficit by 2019.

Meanwhile, demand for natural gas is estimated to increase significantly by 6 to 7 percent during 2015-2025 period.