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Pertamina seeks more overseas gas sources

State-owned oil and gas firm Pertamina is seeking to buy more gas from overseas gas producers to secure supply for its planned gas facilities

Raras Cahyafitri (The Jakarta Post)
Jakarta
Wed, January 28, 2015

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Pertamina seeks more overseas gas sources

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tate-owned oil and gas firm Pertamina is seeking to buy more gas from overseas gas producers to secure supply for its planned gas facilities.

Pertamina director for new and renewable energy Yenni Andayani said the company would need to secure additional supply for its planned Bojanegara land-base plant, which would be able to receive a total 7.5 million tons per annum (mtpa) of liquefied natural gas.

Out of the total volume needed, the company has secured up to 4.5 million mtpa, consisting of 1.52 million mtpa from Cheniere Energy Inc. in the United States, 1 million mtpa from Mozambique, 1.4 million mtpa from the Jangkrik field in Indonesia and 0.5 million mtpa from various committed sources in the Asian and Australian region.

'€œAll will start supplying in 2018,'€ Yenni said, adding that the development of the Bojanegara plant was under a consortium, in which Pertamina is cooperating with Mitsui, Tokyo Gas and local partner BSM [Bumi Sarana Mandiri].

The LNG processed by the plants will be delivered mostly to state electricity firm PT PLN.

Apart from the Bojanegara plant, Pertamina also plans to invest in a number of regasification terminals to meet growing demand for gas in the country. Among the planned regasification units, including the floating storage and regasification unit (FSRU) in Cilacap and Cilamaya as well as a land-based LNG terminal in Bali, which is also expected to support deliveries to the eastern part of the country.

The plan for Cilamaya is currently under review.

Pertamina has began seeking supply from overseas as there are concerns about gas supply from Indonesian fields. A number of gas projects have been planned. However, most are expected to be delayed, raising concerns about supply security when demand is higher in the next few years.

Indonesia is projected to have significant gas resources, with an estimation of 104 trillion standard cubic feet (tscf) in proven and 48 tscf in potential gas reserves, making it the 13th-largest 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, most of the gas resources are located in the eastern part of the country while the burden of consumption is in the western part, particularly the Java area. Therefore, the current challenge is infrastructure to bring the energy from the reserve-rich areas to consumption areas.

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