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Jakarta Post

PLN set to absorb Masela gas

  • Viriya P. Singgih

    The Jakarta Post

Jakarta   /   Tue, June 13, 2017   /   09:47 am
PLN set to absorb Masela gas A technician of state-owned electricity firm PLN checks the electrical network in Jakarta. (Antara/Akbar Nugroho Gumay)

State-owned electricity firm PLN has stated its readiness to absorb 60 million standard cubic feet per day (mmscfd) of gas to be produced at the Masela block in the Arafura Sea to develop a combined-cycle power plant (PLTGU) with a capacity of 300 megawatts (MW) of electricity.

The electricity will be used to support various businesses, including fertilizer and petrochemical plants, which are planned to be developed in the area near Masela block.

According to the Industry Ministry, three other companies have shown interest in investing in Masela block, namely state-owned fertilizer producer PT Pupuk Indonesia, petrochemical firm PT Elsoro Multi Pratama and plastic product company PT Sojitz Indonesia, with a total demand of 474 mmscfd.

(Read also: LNG plant for Masela likely to produce 9.5 mtpa of gas: Minister)

“Because there is another demand of 60 mmscfd from PLN, the total demand will be too large. So, we will discuss the matter in the next meeting [with other stakeholders],” the Industry Ministry's director of upstream chemical industry Muhammad Khayam said in Jakarta on Monday.

Previously, state-owned energy giant Pertamina also expressed interest in buying 200 mmscfd of gas produced at Masela block. However, Khayam said the company had cancelled its plan without disclosing further details.

He said the ideal price of the gas might reach US$5.5 per million British thermal units (mmbtu), considering the recent surge in the price of global commodities.

The Masela block is expected to produce 1,200 mmscfd of gas and 24,000 barrels of condensate per day starting in 24 years. (bbn)