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Six gas sale and purchase agreements signed
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Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) head Amien Sunaryadi (second left), state lender Bank BNI CEO Ahmad Baequni (second right), state lender Bank BRI CEO Asmawi Syam (left) and state lender Bank Mandiri deputy CEO Sulaiman A Arianto engage in light talks after an event in Jakarta on March 24. (ANTARA FOTO/Yudhi Mahatma)
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ix gas sale and purchase agreements were signed during the opening of the 41st Indonesian Petroleum Association (IPA) exhibition and convention at the Jakarta Convention Center in South Jakarta on Wednesday.
The agreements are estimated to contribute around US$5 billion to state coffers during the contract period.
Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) head Amien Sunaryadi said all the agreements were for domestic purposes.
“The gas will be used to supply power, industrial and oil and gas lifting [ready-to-sell production] demands, in addition to household needs,” he said.
The six agreements signed on Wednesday consist of four new agreements and two amendments of existing contracts.
One of the agreements is for sale of liquefied natural gas (LNG) from BP’s Tangguh plant to state-owned electricity firm PLN. BP, alongside other Tangguh contractors, to supply PLN with 16 cargoes of LNG per year starting from 2020 until 2035.
“We hope that PLN will be able to fully absorb the LNG supply to support the government’s Nawacita program and provide sufficient electricity while also increasing the national electrification ratio,” Amien said.
While Indonesia continues to export gas, supplies for domestic demand continue to increase. SKKMigas estimated that demand increased by around 9 percent per year from 2003 to 2016. Data shows that 58.5 percent of this year’s domestic gas allocation had been fulfilled by the end of February. (bbn)
