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Executive column: Penta Gas Sistems sets sights on small-scale LNG projects
Penta Gas Sistems president director Pedro Nemalceff spoke to The Jakarta Post’s Divya Karyza about the country’s LNG distribution infrastructure issues and the firm’s plans in the sector.
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Penta Gas Sistems president director Pedro Nemalceff
(Penta Gas Sistems/-)
Indonesia has some 10,000 potential sources of liquefied natural gas (LNG) scattered across the country, many of them quite small. However, the country’s gas infrastructure has a ways to go before it can take advantage of more modestly sized reserves. Penta Gas Sistems president director Pedro Nemalceff spoke to The Jakarta Post’s Divya Karyza about the country’s LNG distribution infrastructure problems and the firm’s plans in the sector.
Question: How would you describe the current situation with regard to LNG distribution infrastructure development in Indonesia?
Answer: There has yet to be a significant development considering LNG production mainly takes place in a few locations with large gas reserves. When people think of LNG, they mostly think of large-scale projects with large gas reserves and large investments. While in reality, we have a lot of untapped smaller gas reserves. It is possible to perform LNG liquefaction from flared gas and stranded gas fields.
Gas flaring is a practice of burning natural gas associated with oil extraction. The gas is lifted from below the surface with oil during the process of making liquefied oil, so the gas is burned because the volume is too small. So how do we deal with this? This is actually a big problem in Indonesia because we have many flared gas spots.
Stranded gas fields, on the other hand, are natural gas fields that have been discovered but remain unusable for either physical or economic reasons. In most cases, according to my observations, these fields have very small reserves, located away from gas pipes and away from consumers. So transporting gas from these fields are difficult.
That’s why Penta Gas Sistems is working with Argentinian technology company Galileo to develop these small-scale LNG projects because the country has the market size and a promising small-scale LNG source potential.
