Three Gas Contracts Signed for 35,000 MW Project

TEMPO.CO, Jakarta – Upstream Oil and Gas Regulatory Special Task Force (SKK Migas) has signed three sales and purchase contracts of natural gas to support the government’s 35,000 megawatt (MW) electricity project. The agreements are likely to send some Rp33.74 trillion to the state coffer during the contracts' period.

“The upstream natural gas sector is hoped to contribute up to 13,400 MW in the 35,000 MW project,” said SKK Migas interim head Amien Sunaryadi in a release dated Monday, May 4, 2015.

The three contracts comprise two sales and purchase agreements (PJBG) and a head of agreement (HoA). The first contract is the PJGB between ConocoPhillips (Grissik) Ltd. And state electricity company PT PLN to meet gas demands for the electricity sector in Sumatra, western parts of Java and Batam at 40 British thermal unit per day (BBUTD) for three years.

The second contract is between Petroselat and PLN to fulfill gas demands for electricity in Riau at five BBUTD for five years. The HoA, meanwhile, was signed by PetroChina International Jabung and province-owned PT Bumi Samudra Perkasa for electricity supplies to PLN power plants in Jambi province.

Amin said the SKK Migas remained committed to stepping up its domestic gas supplies, which have climbed by an average of nine percent since 2003.

In 2013, the country saw its domestic gas supplies eclipse gas exports. A year later, domestic gas supplies reached 59.8 percent, while exports hit 40.20 percent. Domestic gas use this year is estimated to increase by 62.7 percent, while exports would drop to 37.3 percent. 

AYU PRIMA SANDI