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Development of natural gas industry in Indonesia.

Introduction

Natural gas has been growing in demand in the past several years with the growing use of gas as source industrial and household energy, as well as feedstock feed·stock  
n.
Raw material required for an industrial process.

Noun 1. feedstock - the raw material that is required for some industrial process
raw material, staple - material suitable for manufacture or use or finishing
 for fertilizer fertilizer, organic or inorganic material containing one or more of the nutrients—mainly nitrogen, phosphorus, and potassium, and other essential elements required for plant growth.  industry.

Gas is the country's third main source of energy after oil fuel (BBM BBM Brokeback Mountain (book/movie)
BBM Bureau of Broadcast Measurement
BBM Bachelor of Business Management
BBM Break Before Make
BBM Bread Board Model
BBM Bulk Business Mail
BBM Bahn Brenner Motorsport
) and coal. Gas accounted for 13.7% of the country's energy consumption in 2008.

Shortage in the supply of natural gas in the country has affected the operations of a number of industries notably fertilizer industry.

The gas price, which is not dictated by the market mechanism for domestic consumption has led to producers seeking to export most or all of their production resulting in scarcity Scarcity

The basic economic problem which arises from people having unlimited wants while there are and always will be limited resources. Because of scarcity, various economic decisions must be made to allocate resources efficiently.
 in supply on the domestic market. The price of gas on the domestic market has always been cheaper than in export market.

The government sought to sort out the problem with the Domestic Market Obligation (DMO DMO Debt Management Office (Bank of England)
DMO Destination Marketing Organization
DMO Defence Materiel Organisation (Australia)
DMO Dental Maintenance Organization
DMO Distributed Mission Operations
) policy and slapped restriction on gas exports from new gas field such as Donggi--Senoro to better guarantee supply on the domestic market.

The government has issued a number of policies to accommodate strong demand from industrialists to use as much as possible gas for domestic consumption. Among the policies include the change in the point of gas delivery from the plant gate in Singapore to the well heads in Indonesia, a move seen that could change the process of gas cost calculation and selling price.

Natural Gas Composition

Natural gas is made up of hydrocarbon hydrocarbon (hī'drōkär`bən), any organic compound composed solely of the elements hydrogen and carbon. The hydrocarbons differ both in the total number of carbon and hydrogen atoms in their molecules and in the proportion of hydrogen  gases, primarily methane methane (mĕth`ān), CH4, colorless, odorless, gaseous saturated hydrocarbon; the simplest alkane. It is less dense than air, melts at −184°C;, and boils at −161.4°C;.  (C1). It is usually found deep underground, often with deposits of oil, and is pumped out together with oil.

After it reaches the surface, the gas is separated from any oil or water that may have been mixed in the oil deposit. It is then processed to remove impurities, other gases such as propane propane, CH3CH2CH3, colorless, gaseous alkane. It is readily liquefied by compression and cooling. It melts at −189.9°C; and boils at −42.2°C;.  and butane butane (by`tān), C4H10, gaseous alkane, a hydrocarbon that is obtained from natural gas or by refining petroleum. , and any remaining water or water vapor vapor /va·por/ (va´por) pl. vapo´res, vapors   [L.]
1. steam, gas, or exhalation.

2. an atmospheric dispersion of a substance that in its normal state is liquid or solid.
.

Natural gas differs from LPG LPG: see liquefied petroleum gas.

1. LPG - Linguaggio Procedure Grafiche (Italian for "Graphical Procedures Language"). dott. Gabriele Selmi. Roughly a cross between Fortran and APL, with graphical-oriented extensions and several peculiarities.
 (Liquefied Petroleum Gas liquefied petroleum gas or LPG, mixture of gases, chiefly propane and butane, produced commercially from petroleum and stored under pressure to keep it in a liquid state.  / LPG) in its component, with LPG primarily made up of Propane (C3). LPG is distributed by vessel, while natural gas by pipeline.

Energy generated from natural gas is measured in calorie calorie, abbr. cal, unit of heat energy in the metric system. The measurement of heat is called calorimetry. The calorie, or gram calorie, is the quantity of heat required to raise the temperature of 1 gram of pure water 1°C;. . The energy content is not the same among gas from different wells. The lowest calorie of natural gas in Indonesia is 5991 Kcal /m3 and the highest is 11127 Kcal /m3.

Natural gas distributed in Banten, Karawang, Bogor and Jakarta has a calorie of 7703-11127 Kcal /m3, and natural gas distributed in Cirebon has the lowest calorie of 5991 Kcal /m3.

Natural gas reserves to be depleted de·plete  
tr.v. de·plet·ed, de·plet·ing, de·pletes
To decrease the fullness of; use up or empty out.



[Latin d
 in 59 years

Indonesia's potential gas reserves recorded in 2008 totaled 170 TSCF TSCF The Social Capital Foundation (Brussels, Belgium)
TSCF Tertiary Students Christian Fellowship (New Zealand)
TSCF Task Schedule Change Form
TSCF Tri State Careflight
 with production rate per year of 2.87 TSCF. Based on the production to reserve ratio, Indonesia's gas reserves will last for 59 years from 2008.

The reserves could shrink shrink Vox populi noun A psychiatrist  or increase depending on new discovery. The latest major discoveries were in Tangguh, Papua and Masela, in southern Maluku.

There was almost none new gas drilling in the past three years. In 2007 drilling reached 22,626 feet.

Producing gas fields in Indonesia

Donggi-Senoro

The Donggi-Senoro gas fields in Central Sulawesi Central Sulawesi (Sulawesi Tengah) is a province of Indonesia located in the heart of Sulawesi. It was established on April 13, 1964.

Central Sulawesi has an area of 68,033 km (26268 sq mi) 
 are operated by PT Pertamina EP and JOB Pertamina-Medco E&P Tomori. Development of the Donggi field is integrated in the area of Matindok, which includes the Donggi field, the Matindok field, the Maleoraja field and the Minahaki field. The Senoro field is the expansion of the Senoro gas field and the Tiaka oil field.

Proven reserves in the Matindok and Senoro blocks totals 2.3 trillion One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time.

(mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed.

In the USA and Canada, 10^12.
 cubic feet (Tcf). Gas production from the Donggi Senoro fields could increase by 50 million metric standard cubic feet per day (MMSCFD MMSCFD Millions of Standard Cubic Feet per Day (measure of gas produced in a reservoir) ) with the discovery of new reserves.

In the Senoro field there is potential addition of 0.6 TCF in reserve and in Matindok 0.76 TCF. The two fields, therefore, could turn out 455 mmscfd per day for 15 years. Investment needed for the development of the Senoro field is estimated to reach US$ 800 million and investment in Matindok at US$ 790 million.

The government has announced that gas from the two fields are all for domestic consumption, but the government may have to change the decision to attract investors development of the fields has been delayed long over disagreement on the government policy? The investors want that they are allowed to export part of the production. The consortium has proposed a scheme under which 70 MMSCFD of the production was for domestic consumption and 335 MMSCFD for exports. They considered the scheme most feasible.

Gas from the fields is expected to be used by PT Pupuk Sriwijaya (Pusri), PT Perusahaan Listrik Negara PLN (Perusahaan Listrik Negara, lit. 'State Electricity Company') is an Indonesian government-owned corporation which runs the country Electricity. History  (PLN PLN

In currencies, this is the abbreviation for the Polish Zloty.

Notes:
The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion.
) and PT Panca Amara Utama (PAU). The three needs a total gas supply of 211 million MSCFD.

The consortium of PT Pertamina and PT Medco has agreed to lower the gas selling price to US$5-US$6 per MMBTU MMBTU Million British Thermal Units  from US$ 6.16 per MMBTU, but they set requirement that the buyers must be ready in receiving the gas and there should be certainty in payment.

Tangguh field

Gas production tends to be stable

The country's gas production in the past several years has relatively been stable or unchanged with production rate averaging 2.9 TSCF (trillion standard cubic feet).

The producers include Pertamina, holders of Pertamina Joint Operation Body (JOB), Pertamina Technical Assistance Contract (TAC) and Pertamina Joint Operation Body--Production Sharing Contract (JOB-PSC), and production sharing contract (PSC (Public Service Commission) Same as PUC. ).

PSC contractors accounted for the largest part of the gas production contributing 2.5 TSCF, followed by Pertamina contributing 300 MSCF MSCF Mario Strikers Charged Football (gaming)
MSCF Minnesota State College Faculty
MSCF Master of Science in Computational Finance (degree)
MSCF Molecular Sciences Computing Facility
.

Production by holders of Pertamina JOB contracts and Pertamina TAC were small accounting for 18 million MSCF and 30 MSCF respectively in 2006 to 2008.

PSC contractors account for 88% of the country's gas production on the average with Pertamina accounting for 10% and Pertamina JOB and Pertamina TAC contractors accounting for 0.7% each

Utilization of natural gas

Natural gas is used by fertilizer industry, LPG industry, (liquefied natural gas liquefied natural gas: see under natural gas.
Liquefied natural gas (LNG)

A product of natural gas which consists primarily of methane. Its properties are those of liquid methane, slightly modified by minor constituents.
 (LNG LNG (liquefied natural gas): see under natural gas. ) industry, condensate condensate, matter in the form of a gas of atoms, molecules, or elementary particles that have been so chilled that their motion is virtually halted and as a consequence they lose their separate identities and merge into a single entity.  industry, gas drilling, etc.

Most or an average of 1.3 TSCF of the country's natural gas production is processed into LNG for exports with only 320 million MSCF for domestic consumption every years.

Total E&P Indonesie largest producer

Total E&P Indonesie, a PSC holder, is he largest producer of natural gas in Indonesia. The company produces gas from offshore field in East Kalimantan East Kalimantan (Indonesian: Kalimantan Timur abbrv. Kaltim) is Indonesian province on the east of Borneo island. The resource-rich province has two major cities, Samarinda (the capital and a center for timber product) and Balikpapan (a petroleum center with oil . In 2008, its production reached 1,009,972,142 MMSCF MMSCF Million Standard Cubic Feet (oil industry) .

Total E&P Indonesie contribute around 40% to the country's total production of natural gas. Other major producers among PSC holders include Exxon Mobil, Conoco Phillips Grissik Ltd, Vico Indonesia and Petrochina Jabung Ltd.

Exports of natural gas on the decline

Indonesia exports most of its natural gas production with a smaller part left for domestic consumption. Exports have been made to Singapore, Japan, China, Korea, Thailand and Malaysia. Exports are mainly in the form of LNG, but there are also through transmission pipeline.

Domestic consumption of natural gas in the 2003-2007 period totaled 20,120,000 MMSCFD or 48 percent of the total production and exports totaled 21,550,000 MMSCFD or 52 percent of the total production.

Since 2009, the export percentage began to decline. In 2009 exports were less than 50 percent of the production only 46.08 percent or 3,667 MMSCFD.

An export of natural gas in LNG has tended to decline from year to year but exports through pipelines tended to increase. In 2007, the country's total exports of LNG fell 8.5 percent to 1,076,785 MMSCFD. In 2008, the exports fell further by 0.8 percent to 1,067,796 MMSCFD.

In the first 10 months of 2009, the country's LNG exports totaled only 841,911 MMSCFD or around 84,191 MMSCFD per month or lower than the average of 88,983 MMSCFD per months in the previous year.

Meanwhile, exports through pipelines were growing such as through the pipeline transporting gas from Grissik in central Sumatra to Singapore.

Volume of gas exports through pipelines has fluctuated in the past years but tended to rise. In 2007, exports through pipelines reached 297,000 MMSCFD, but fell 20 percent to 235,000 MMSCFD in 2008. In 2009, exports shot up reaching 291,000 MMSCFD in the first 10 months of hat year.

In he coming years gas exports are expected to shrink with growing domestic requirement.

Exports contracts

Gas export contracts are generally long term. The country still has a number of long term contracts to honor and some of the contracts are effective only as from this year.

A long term 18-year contract for gas exports to Singapore between Premier Oil Natuna BV and Sembgas of Singapore signed in 2008 will be effective only as from this year. Gas is to be exported through submarine submarine, naval craft capable of operating for an extended period of time underwater. Submarines are almost always warships, although a few are used for scientific or business purposes (see also submersible).  pipelines owned by Conoco Philips.

New export contracts in 2009 included one for 125,000 tons per year from the Tangguh field in Papua signed between Pertamina and a Japanese buyer Tohoku Electric Power Co.

Gas from Tangguh is exported in the form of LNG processed in the Tangguh LNG plant. The plant has a production capacity of 7.6 million tons of LNG a year. Around 7.4 million tons of LNG to be produced by the plant has been sold under contracts to a number of buyers. The contract buyers include Sempra Energy Sempra Energy NYSE: SRE is a San Diego, California-based energy services holding company that was founded in 1998. Sempra owns the Southern California Gas Company, San Diego Gas & Electric, Sempra Commodities, and Sempra Generation.  Marketing Co for 3.7 million tons per year, Fujian 2.6 million tons per year, and Korean buyers Posco and K-Power 1.1 million tons per year.

Meanwhile, a number of old contract will expire this year in 2010 such as one signed with Japanese western buyers.

According to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3.
 plan, in 2011, the government will reduce new contracts for gas exports to guarantee domestic requirement.

Domestic gas requirement growing

The country needs natural gas for various purposes such as feedstock for fertilizer industry and as fuel for ceramic This article is about ceramic materials. For the fine art, see Ceramic art.

The word ceramic is derived from the Greek word κεραμικός (keramikos).
, and textile industries and as household fuel, and to feed gas fired power plants and as a source of energy in oil and gas mines.

Domestic gas requirement averages 5,557.6 MMSCFD in 2009 and 2010. Central and southern parts of Sumatra and western Java (Region III) are the largest consumers of gas with consumption averaging 2,994.7 MMSCFD in 2009-2014.

Gas as fuel is used by PGN PGN Portable Game Notation (chess)
PGN Procuraduria General de la Nación (Spanish)
PGN Philadelphia Gay News
PGN Parameter Group Number
PGN Phi Gamma Nu (business fraternity) 
 of Batam, PGN of Pekanbaru, and PGN of West Java and LPG plants such as those of PT Ogspiras Basya Pratama in Palembang and PT. Titis Sampurna in Prabumulih. Industrial consumers using gas as fuel include PT. Asahimas in West Java.

Gas used to generate power is used by various power generating plants such as PLTG of Duri, PLTG of Teluk Lembu, PLTGU of Asrigita Prasarana, PLTG of Talang Dukuh, PLTG of Energi Musi Musi (m`sē), river, c.325 mi (520 km) long, rising in the Pegunungan Barisan, S Sumatra, Indonesia.  Makmur, PLN of Injiniring, PLN of Kramasan, PLN of Borang, PLN of Muara Karang, PLN of Tanjung Priok Tanjung Priok (also Tandjung Priok) is a subdistrict of North Jakarta, Indonesia. It hosts the city's main harbour of the same name. The port, Indonesia's busiest, is managed by national port company PT Pelindo. , PLN of Muara Tawar, and PLN of Cilegon.

PT. Chevron Pacific Indonesia uses most of its gas production to generate energy for own and local requirement and for Joint Operation Body (JOB) of Suryaraya Teladan.

Gas feedstock is used by fertilizer factories such as those of PT Pupuk Sriwijaya in Palembang, and PT Pupuk Kujang in West Java.

The second largest consumer of natural gas is the eastern part of Java (Region V) with consumption averaging 843.8 MMSCFD mainly for combined cycle A combined cycle is characteristic of a power producing engine or plant that employs more than one thermodynamic cycle. Heat engines are only able to use a portion of the energy their fuel generates (usually less than 50%). The remaining heat from combustion is generally wasted.  power plant (PLTGU) of Gresik owned by PLN. Petrochemical petrochemical, any one of a large group of chemicals derived from a component of petroleum or natural gas. The cracking processes for manufacturing gasoline produce vast quantities of gaseous hydrocarbons.  company PT Petrokimia Gresik also needs natural gas as feedstock. PGN, the state gas distributor by gas mainly to be sold as fuel for industries and household.

Indonesia is one of the world's largest producer of natural gas but its domestic requirement is not yet entirely secured as the country has long term contracts to exports a large part of its gas output. The government, however, has pledged to reduce exports to guarantee domestic supply.

Electricity sector the largest gas consumer

The electricity sector is the largest user of gas in the country with consumption averaging 2,130.7 MMSCFD in 2009 to 2014.

Gas requirement for the electricity sector is expected to decline in 2012 through 2014 demand from contract buyers will fall sharply despite there will be new demand from new contract customers in the central part of Sumatra and eastern Java in that period.

The second largest part of domestic gas requirement is for fuel averaging 1,385.5 MMSCFD, Demand from contract buyers will also fall despite an increase in demand from some of the customers starting 2011 in central part of Sumatra and central Java Central Java (Indonesian: Provinsi Jawa Tengah) is a province of Indonesia. The administrative capital is Semarang. It is one of the six provinces of the island of Java. Central Java is both a political entity and a cultural concept.  starting 2011.

The third largest is for feedstock mainly for fertilizer and petrochemical industries that need gas averaging 1,145.6 MMSCFD. The gas requirement for feedstock is expected to remain flat as there is no new fertilizer and petrochemical factories expected in the near future.

Requirement exceeds supply

Indonesia is one of the world's largest gas producers but a large part of its production is for export under long term contracts with foreign buyers resulting in shortage in domestic supply.

In the next several years, Indonesia is still expected to have a deficit in domestic supply. The shortage is estimated to reach around 10 MMSCFD in 2011 and it is forecast to rise to 170 MMSCFD in 2015.

Domestic supply includes gas for the electricity sector from gas producers under contracts with priority consumers PLN and IPPs, which are 51% owned by PLN and gas for PGN supplied by producers under contracts.

Domestic gas supply especially for PGN customers is expected to decline by 65 MMSCFD with the expiration EXPIRATION. Cessation; end. As, the expiration of, a lease, of a contract, or statute.
     2. In general, the expiration of a contract puts an end to all the engagements of the parties, except to those which arise from the non- fulfillment of obligations created
 of contract between PGN of Muara Karang and PT, Pertamina Hulu Energy ONWJ.

Around 165 industrial customers and 81 commercial customers of PGN will suffer as a result of the shortfall in gas supply; PGN also plans to cut gas supply 20% in April 1, 2010

BP Migas has told PT Medco Energy Internasional Tbk, the operator of Singa field of the Lematang block to supply PGN with 50 MMSCFD of gas.

Originally Medco planned to supply the gas to Chevron, which planned to use the gas for its project of enhanced oil recovery Enhanced Oil Recovery (EOR) is a generic term for techniques for increasing the amount of oil that can be extracted from an oil field. Using EOR, 30-60 %, or more, of the reservoir's original oil can be extracted [1] compared with 20-40% [2]  (EOR EOR - exclusive or ) steam flood in Verb 1. flood in - arrive in great numbers
arrive, come, get - reach a destination; arrive by movement or progress; "She arrived home at 7 o'clock"; "She didn't get to Chicago until after midnight"
 the Duri field of Rokan block, operated by Chevron Pacific Indonesia for three years.

PGN will buy gas from Medco at a price of US$5.7 per million Btu (1,000 MSCFD). The gas allocation will be distributed for industries in the western part of Java.

PLN short of gas

PT, PLN (Persero) has so far secured only 1,150 MMSCFD of gas for 2010 less than half of its total requirement of 2,538 MMSCFD.

Among the regions having deficit in gas supply include Belawan, in North Sumatra North Sumatra (Indonesian: Sumatera Utara) is a province of Indonesia. Its capital is Medan. Geography and population
The province of North Sumatra stretches across the island of Sumatra between the Indian Ocean and the Strait Malacca.
, Belawan needs 175 MMSCFD of gas but it has secured only 38 MMSCFD.

PLN plans to hold negotiations with PGN on additional supply of 150 MMSCFD, PGN will supply 150 MMSCFD from LNG Receiving terminal, which is yet to be built and expected to be operational only in September 2011.

Total gas requirement of Jakarta is around 575 MMSCFD until 2011, The increase in requirement followed the capacity expansion of Muara Karang power plant, PLN has secured gas supply under contracts include only 30 MMSCFD from PGB PGB Persoonsgebonden Budget (Dutch)
PGB Prueba General de Bachillerato
PGB Precision Guided Bomb (Royal Air Force, UK)
PGB Partido de la Gente del Bar
PGB Permanent Guide Base
PGB Propeller Gear Box
 and 120 MMSCFD from PT, Pertamina Hulu Energy Offshore North West Java (Pertamina HE ONWJ), therefore, it still needs additional supply of 425 MMSCFD.

Other regions having deficit in gas supply is East Java East Java (Indonesian: Jawa Timur) is a province of Indonesia. It is located on the eastern part of the island of Java and also includes neighboring Madura and Bawean islands.  with a shortage of 300 MMSCFD, East Java's gas requirement is 550 BBTUD this year as against supply available of 250 MMSCFD.

PLN has secured gas supply commitment for the years of 2011 and 2012 averaging 930 MMSCFD, PLN will receive gas supply of 720 MMSCFD from three LNG receiving terminals yet to be built including one each in Jakarta to supply 400 MMSCFD, in East Java to supply 160 MMSCFD, and in Medan to supply 160 MMSCFD.

PLN will also have gas supply from the offshore Kepodang gas field in the Java Sea Java Sea

Part of the western Pacific Ocean between Java and Borneo islands. Measuring 900 mi (1,450 km) long by 260 mi (420 km) wide, it occupies a total area of 167,000 sq mi (433,000 sq km). A shallow sea, it has a mean depth of 151 ft (46 m).
 operated by Petronas, The gas supply will be used to feed the combined cycle power generating plant (PLTGU) of Tambak Lorok averaging 116 MMSCFD, Other additional supply of 60 MMSCFD from Pertamina will be used for power plants in Bali.

Gas for PLN could be fully supplied if the project of LNG receiving terminals to be built in North Sumatra has been built and operational. The project is to be built by PGN alone with LNG to be supplied form Tangguh, The terminal to be built Western Java will be built jointly with Pertamina with LNG to be supplied from Qatar.

Contracts with domestic buyers

In 2009 a number of gas sales and purchase contracts were signed between producers and domestic buyers such as those from the electricity, fertilizer, petrochemicals and manufacturing sectors.

The contracts included four worth US$170,19 million in the electricity sector, six valued at US$284,48 million in the fertilizer and petrochemical sector and two valued at US$ 10,82 million in the manufacturing sector.

In 2009, altogether there were 21 contracts for gas and LPG sales and purchase contract between domestic suppliers and buyers, The contracts include four for 100 TBTU and 1 million metric tons of LPG.

In 2002 through 2008 there were 96 such contracts for 14 tcf of gas. In the 2003-2009 period, 137 head of agreements (HOA), gas sales and purchase agreement (PJBG) and amendment to gas sales and purchase agreements were signed.

In February, 2010, six contracts were signed to be supplied through pipelines for more than 75,900 MMSCFD valued at US$ 540 million. The contracts included 3 HoA, 2 Amendment to gas sales and purchase agreement and 1 gas sales and purchase agreement.

Around 65,340 MMSCFD of gas bought by Pertamina would be used as feedstock for natural gas liquefaction liquefaction, change of a substance from the solid or the gaseous state to the liquid state. Since the different states of matter correspond to different amounts of energy of the molecules making up the substance, energy in the form of heat must either be supplied to  (NGL NGL - A dialect of IGL. ) plant in to be built in South Sumatra South Sumatra or Sumatera Selatan is a province of Indonesia. It is on the island of Sumatra, and borders the provinces of Lampung to the south, Bengkulu to the west, and Jambi to the north.  by Pertamina Gas (Pertagas) and El of South Korea.

The NGL project is estimated to cost US$192 million with contractor PT Tripatra Engineers and Contractor.

Construction of the plant, which will need 350 MMSCFD of gas as feedstock was to start in March 2010 producing 540 tons of LPG, 150 tons of propane and 2,150 barrels of condensate per day.

Other contracts include one between Pertamina EP as the producer and Medco EP Indonesia, Gas for 1,39 Btu, which will be used by Medco to help pump out more oil from its Ibul field in South Sumatra Extension (SSE (1) An earlier full-screen editor in OS/2.

(2) (Streaming SIMD Extensions) A series of additional instructions built into Pentium CPU chips for improved multimedia performance by performing mathematical operations on multiple sets of data at the
) block, Contract is valued at US$3,7 per million Btu (1,000 MSCFD).

Two manufacturing companies buying gas include PT Pelangi Cakrawala Losarang with factory in Losarang, Indramayu.

Based on a regulation of the ESDM ESDM Electronic Software Delivery and Management  minister No,03/ 2010, article 6 point 3, the priority in the use of gas in the country is given to four sectors--artificial lift and enhanced oil recovery to increase oil production, fertilizer industry, power plants and other industries.

Coal Bed Methane to offset deficit

Based on the Indonesian gas balance for 2009-2020 issued by the government, gas from 10 first coal bed methane (CBM CBM Commodore Business Machines
CBM Coalbed Methane
CBM Christoffel Blindenmission
CBM Condition Based Maintenance
CBM Confidence-Building Measures
CBM Curriculum Based Measurement (education)
CBM Cubic Meter
) contracts has been taken into account potential supply.

In order to make up for the deficit in d production and total supply, the government launched CBM crash program, CBM projects in two CBM contract under the program are expected to start turning out at least 450 MMSCFDD of gas in 2011.

So face there has been 14 CBM contracts including 10 contracts signed in 2007

--2008 and 4 in August 2009, In 2010 the government offered new system of contract for natural gas producer called gross production sharing contract (GPSC GPSC Georgia Public Service Commission
GPSC General Purpose System Console
) instead of previous system of PSC/ KKS KKS Kraftwerks-Kennzeichen-System
KKS Kesselprüf und Korrosionsschutz GmbH
KKS Kretskort Service (Norwegian electronic design firm)
KKS Kinsella Khemical Sales (Ireland) 
.

The difference between PSC contract PSC and GPSC lies in whether there is cost recovery or there is not, Under the PSC contract the government will pay all cost spent by the investors when CBM is discovered and produced, Under GPSC, there is no cost recovery, All investment is part of the capital of the investor.

Indonesia gas CBM reserves estimated to total 453.3 trillion cubic feet (TCF) in 11 hydrocarbon basins or the second ;largest in the world, Around 112.47 TCF of the reserves are proven and 57.60 RCF RCF Remote Call Forwarding
RCF Residential Care Facility
RCF Relative Centrifugal Force
RCF Rolling Contact Fatigue
RCF Refractory Ceramic Fiber
RCF Revolving Credit Facility
RCF Rock Characterisation Facility
RCF Registration Confirm
RCF Retained Cash Flow
 are potential reserves.

The largest reserves are in the South Sumatra basins holding a reserve of 183 TCF, Barito basin with reserves of 102 TCF, Kutai basin with reserves of 80.4 TCF and the Central Sumatra basins 52.2 TCF.

The government to build distribution and transmission networks

Limited availability When customers of the PSTN make telephone calls, they commonly make use of a telecommunications network called a switched-circuit network. In a switched-circuit network, devices known as switches are used to connect the caller to the callee.  of transmission and distribution networks is a one of the problems in increasing the use of gas, Early 2010, the government issued a ministerial Done under the direction of a supervisor; not involving discretion or policymaking.

Ministerial describes an act or a function that conforms to an instruction or a prescribed procedure. It connotes obedience.
 regulation No. 0225 Year 2010 on National Master Plan of Transmission and Distribution of natural gas 2010-2025.

Under the decision gas networks are divided into five categories--open access, dedicated downstream, dedicated upstream From the consumer to the provider. See downstream.

(networking) upstream - Fewer network hops away from a backbone or hub. For example, a small ISP that connects to the Internet through a larger ISP that has their own connection to the backbone is downstream from the larger
, for own use and city gas, According to plan, the networks to be built include networks of Sumatra, networks of Aceh--Lhokseumawe, networks of Aceh- North Sumatra, Central Sumatra--South Sumatra--Lampung, networks of Lampung--West Java, networks of Java, networks of Banten--DKI--West Java, networks of Central Java--East Java, Networks of Kalimantan, networks of East Kalimantan, networks of Sulawesi, and networks of Maluku--Papua.

Networks of Transmission and distribution

Currently there are 4 networks of natural gas transmission and 3 networks of natural gas distribution in Indonesia. Transmission networks are:

South Sumatra--West Java (South Sumatra To West Java / SSWJ) This network is more than 1,000 km long built to transport gas from the Grissik and Pagardewa gas fields of ConocoPhillips and Pertamina, This pipeline is the longest gas pipe in Indonesia serving to help solve energy problem in western Java.

Medan

This network of gas pipeline is used to carry gas from Pertamina to power plant in Sicanang, Medan.

Grissik-Duri

This network is 536 km long with a transporting capacity of 420 MMSCFDD, This network is operated by PT, Transportasi Gas Indonesia (Transgasindo), a subsidiary of PGN, Since 1998, this network of gas pipes has been used to channel gas from the gas field of ConocoPhillips in South Sumatra to Caltex in Duri, Caltex uses the gas to help pump out crude oil in it's enhance oil recovery (EOR) project and to generate power in the project.

Grissik-Singapore

This network of gas transmission pipes is 477 km long from Grissik to Singapore with a carrying capacity carrying capacity

the number of animal units that a farm or area will carry on a year round basis, including that needed for conservation of winter feed. Usually stated as dry cows or dry sheep equivalents per hectare.
 of 350 MMSCFDD, This network, which is operated by Transgasindo supplies gas for Singapore.

A network of gas distribution pipelines in the country is operated by PGN, The networks cover Jakarta and part of cities in West Java, East Java and Sumatra, The total length of the networks of distribution pipelines is 3,480 km with a capacity of 1,103 MMSCFD.

Plans for networks of distribution 2010

The use of natural gas for households in the country has been increasing necessitating development of more gas distribution pipelines.

Development of networks of gas distribution for households is a national priority under the program of energy diversification Diversification

A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance.

Notes:
Diversification is possibly the greatest way to reduce the risk.
, reduction of fuel subsidy subsidy, financial assistance granted by a government or philanthropic foundation to a person or association for the purpose of promoting an enterprise considered beneficial to the public welfare. , provision of clean and cheap energy and conversion of kerosene kerosene or kerosine, colorless, thin mineral oil whose density is between 0.75 and 0.85 grams per cubic centimeter. A mixture of hydrocarbons, it is commonly obtained in the fractional distillation of petroleum as the portion boiling off  into LPG to economize e·con·o·mize  
v. e·con·o·mized, e·con·o·miz·ing, e·con·o·miz·es

v.intr.
1. To practice economy, as by avoiding waste or reducing expenditures.

2.
 on oil.

The government has built networks of natural gas infrastructure for distribution to households as the private sector has little interest in the business area.

Networks of gas distribution are owned by the central government but their management is handed over to the business sector through auctions.

In 2009, the government built a number of networks of natural gas distribution pipelines for households including in Palembang and Surabaya.

Networks in Palembang are built in the lower districts of Siring Agung and Lorok Pakjo, benefiting 3,310 households.

In Surabaya, the networks are built in the lower district of Kalirungkut and Rungkut Kidul, to serve 2,900 households, Gas for Palembang is supplied by PT Medco E&P Indonesia and for Surabaya by PT Lapindo Brantas PT Lapindo Brantas is an oil and gas exploration company, a subsidiary owned by PT Energi Mega Persada Tbk and 60% owned and controlled by the Bakrie Group.[1] The Bakrie Group is owned by the Coordinating Minister for the People's Welfare Aburizal Bakrie and his .

In 2010, a number of project of networks of natural gas for households will be built in Depok and Bekasi, West Java, Sidoarjo in East Java and Tarakan, East Kalimantan Tarakan is a city in East Kalimantan province of Indonesia. Located on the islet with the same name, Tarakan Island, east of the coast of Borneo, the city comprises of 250.80 km² with the total population of 169,951 as of 2006. .

The networks in Depok will be built in the lower districts of Beji and Beji Timur, and in Bekasi in Perumnas Bumi Bekasi Baru, In Tarakan the networks will be built in the lower districts of Karang Balik and Sebengkok, and in Sidoarjo, the networks will be built in Medaeng, Tambaksawah, Ngingas and Wedoro.

In each of the cities between 3,000 and 4,000 households will benefit from the networks.

Gas for the Tarakan networks will be supplied by Medco E&P, for Depok and Bekasi networks will be supplied by PT Pertamina EP; and for the ones in Sidoardjo it be supplied by PT Lapindo Brantas.

Prospects and Conclusion

Indonesia is one of the world's largest producers of natural gas but its gas supply still falls short of domestic requirement. The shortage in domestic supply is caused by large exports under long term contracts with foreign buyers such as in Japan, South Korea and Taiwan.

Meanwhile, domestic gas requirement has continued to increase especially after the government's diversification program in sources of energy in its bid to economize on more expensive oil. The growing demand for gas has resulted in wider deficit in supply. The deficit is feared to widen wid·en  
tr. & intr.v. wid·ened, wid·en·ing, wid·ens
To make or become wide or wider.



widen·er n.
 in the coming years unless the diversification program is successful, Domestic gas requirement is growing fast especially with growing use to generate power and fuel industries, The largest gas consumer in the country is the electricity sector, followed by the manufacturing sector and the household sector.

The government has sought to cope with the deficit in domestic supply by adopting a new policy giving priority in the allocation of gas output for domestic supply. Under the policy, gas produced by new contractors including those holding renewed contracts are required to give priority to selling their gas to local consumers to help boost domestic industry. For Medco is required to sell gas from its Singa field to PGN, which will use it to fuel domestic industries, Previously Medco sold the gas to PT, Chevron Pacific Indonesia.

The government also seeks to solve gas supply deficit by encouraging the production and use of CBM as new industrial fuel. However, supply is also hampered by inadequate availability of transmission and distribution networks to facilitate distribution to the end users. All gas production centers are generally located far away from the consumers that gas transmission and distribution infrastructure is needed.

Among the steps taken to cope with the problems in distribution include plans to build LNG receiving terminals in a number of places including North Sumatra, western and eastern Java and distribution networks in a number of city areas. The government has issued a blue print for gas transmission and distribution systems to be built in 2010-2025.

The prospects of business in natural gas in the country are encouraging as gas is more efficient than oil as fuel. Gas, of which the country still has large reserves, has been used as a cheaper alternative source of energy beside coal.

The fact that gas reserves in the country could still last for the next 60 years will make the prospects more encouraging when the country's oil reserves Oil reserves refer to portions of oil in place that are claimed to be recoverable under economic constraints.

Oil in the ground is not a "reserve" unless it is claimed to be economically recoverable, since as the oil is extracted, the cost of recovery increases incrementally
 are dwindling dwin·dle  
v. dwin·dled, dwin·dling, dwin·dles

v.intr.
To become gradually less until little remains.

v.tr.
To cause to dwindle. See Synonyms at decrease.
 fast. In addition, the country also has large reserve of other type of gas in the form of CBM.
Table--1
Composition of natural gas

Components     Volume (%)

C1               45-100
C2               0.01-10
C3               0.01-16
C4+               10-16
CO2               0-30
N2                0.1-6

Source: PGN

Table--2
Calorific value of natural gas in several distribution areas

Operation areas                      BTU /SCF      Kcal /m3

Banten, Karawang, Bogor, Jakarta     900-1300     7703-11127
Bekasi                               900-1200     7703-10271
Cirebon                                 700          5991
Palembang                            950-1200     8131-10271
Surabaya, Pasuruan, Sidoarjo         950-1250     8131-10669
Medan                                950-1300     8131-10127
Batam                                950-1250     8131-10669
Riau/ Jambi                          950-1250     8131-10669

Source: PGN

Table--3
Indonesia's gas reserves, 2008

Reserves               TSCF

Proven reserves       112.47
Potential reserves     57.60
Total reserves        170.07

Source: Oil and Gas Directorate General

Table--4
Gas drilling

Year    Gas Well (TVD Feet)

2006                   0,00
2007              22,626.00
2008                   0.00
2009                   0.00
2010                   0.00

Source: Energy and mineral ministry (ESDM), processed resources

Table--5
Production natural gas 2006--2009 I (MSCF)

     Producers              2006             2007

Pertamina                306,482,180      274,097,980
Pertamina JOB             20,508,017       19,464,222
Pertamina TAC             41,585,873       10,027,040
Pertamina JOB-PSC                 --               --
Production Sharing     2,585,523,351    2,501,951,031
  Contract (PSC)
Total                   2,954,099,421   2,805,540,273

     Producers              2008           2009 *

Pertamina                315,383,158      58,439,140
Pertamina JOB             16,143,995       220,900**
Pertamina TAC             22,084,122       3,955,094
Pertamina JOB-PSC                 --       2,406,838
Production Sharing     2,531,716,545     430,438,612
  Contract (PSC)
Total                  2,885,327,820     495,460,584

Source: BP Migas, proc

* Semester 12009

** Pertamina JOB & UB

Table--6
Production of natural gas by producers and shares

Producers                             2006     2007     2008

Pertamina                            10.4%     9.8%    10.9%
Pertamina JOB                         0.7%     0.7%     0.6%
Pertamina TAC                         1.4%     0.4%     0.8%
Pertamina JOB--PSC
Production Sharing Contract (PSC)    87.5%    89.2%    87.7%
Total                                  100      100      100

Source: Data Consult

Table--7
Utilization of natural gas (000 MSCF)

Utilization            2006         2007         2008     2009 *

Own use             322,651      284,255      298,142     52,842
Local               337,126      307,381      345,649     82,163
Fertilizer          189,817      197,946      173,196     38,301
Refinery             15,159       24,972       29,727      5,086
LPG/ Lex PI          32,879       35,096       13,196      3,104
Condensate           14,272       10,165        3,858        691
LNG               1,436,091    1,300,348    1,270,854    196,005
PGN                 332,011      321,281      402,042     31,203
Gas                 161,555      226,184      234,965     64,747
Total             2,841,563    2,707,628    2,771,627    474,143
Shrinkage               705          308          294         84
Flared              111,832       97,605      113,406     35,392
% gas Used            96,19        96,51        96.06      93.04

Source: BP Migas, processed

* Semester I 2009

Table--8
Production of natural gas by PSC holders, 2006--2009 I (MMSCF)

Onshore                                     2006             2007

1. EXXON MOBIL                           322,253,950      280,683,520
2. ASAMERA OIL (N.S) GULF (ACEH) LTD               0                0
3. PT. CPI                                25,108,170       22,638,860
4. BUMI SIAK PUSAKO                                0                0
5. C & T (MFK)                                     0                0
6. C & T (SIAK)                                    0                0
7. PETROSELAT LTD                             40,516           38,841
8. CONOCO PHILLIPS GRISSIK LTD           209,812,316      225,889,014
9. MEDCO E&P INDONESIA LEMATANG              416,333          511,382
10. MEDCO E&P INDONESIA (SS+CS)           26,511,417       28,629,256
11. MEDCO E&P INDONESIA (RIMAU)            9,008,820        5,950,772
12. EMP KANGEAN                           22,880,004       16,529,919
13. VICO                                 208,370,777      184,745,653
14. MEDCO E&P INDONESIA KALIMANTAN         7,755,439        6,515,990
15. PETROCHINA BERMUDA                     5,529,234        5,338,788
16. PETROCHINA JABUNG                    105,485,362      105,864,165
17. ENERGY EQUITY EPIC SENGKANG            9,318,943        8,886,955
18. LAPINDO BRANTAS (EMP BRANTAS)         14,378,955        6,155,352
19. CITIC SERAM ENERGY                       874,990          843,663
20. PEARL OIL KUALA TUNGKAL                  567,300          201,480
21. PETROCHINA BANGKO                         74,850           43,957
22. BENUO TAKA                               337,725          472,214
23. CONOCO PHILLIPS SOUTH JAMBI            8,360,197        5,827,744
24. KALILA (KORINCI BARU)                          0        2,154,628
25. MOBIL CEPU LTD                                 0                0

Sub Total                                977,085,298      907,922,153

Offshore
1. PREMIER OIL                            52,453,428       53,950,918
2. CONOCO PHILLIPS NATUNA                126,898,420      164,501,106
3. STAR ENERGY (KAKAP)                    33,088,628       32,564,181
4. KONDUR PETROLEUM S.A                    2,241,457        2,996,568
5. CNOOC SES                              25,716,079       36,695,155
6. KODECO                                 24,229,599       21,242,464
7. ARII/BP-ONWJ                          136,798,950      118,868,031
8. CAMAR RES. CANADA                               0          496,063
9. CHEVRON IND. CO.                       75,407,168       74,667,276
10. CHEVRON MAKASSAR                      31,818,462       29,390,783
11. TOTAL E&P INDONESIE                1,097,341,041    1,016,112,573
12. SANTOS (MADURA OFFSHORE)               2,444,821       24,947,617
Hess (Ujung Pangkah)                               0       17,596,143
13. BP TANGGUH                                     0                0
14. SANTOS (SAMPANG)                               0                0

Sub Total                              1,608,438,053    1,594,028,878

Total Production Sharing               2,585,523,351    2,501,951,031

Onshore                                     2008            2009 *

1. EXXON MOBIL                           242,110,140      116,938,670
2. ASAMERA OIL (N.S) GULF (ACEH) LTD               0                0
3. PT. CPI                                17,482,810        8,376,110
4. BUMI SIAK PUSAKO                                0                0
5. C & T (MFK)                                     0                0
6. C & T (SIAK)                                    0                0
7. PETROSELAT LTD                             37,005           15,062
8. CONOCO PHILLIPS GRISSIK LTD           266,171,646      159,080,998
9. MEDCO E&P INDONESIA LEMATANG               50,979           10,980
10. MEDCO E&P INDONESIA (SS+CS)           26,968,075       15,236,654
11. MEDCO E&P INDONESIA (RIMAU)            6,212,920        2,216,600
12. EMP KANGEAN                           12,986,714        5,500,709
13. VICO                                 176,937,223       84,356,634
14. MEDCO E&P INDONESIA KALIMANTAN         7,254,483        1,419,888
15. PETROCHINA BERMUDA                     5,937,174        2,969,030
16. PETROCHINA JABUNG                    100,439,107       48,048,636
17. ENERGY EQUITY EPIC SENGKANG           10,261,654        7,050,998
18. LAPINDO BRANTAS (EMP BRANTAS)          3,747,870        1,597,416
19. CITIC SERAM ENERGY                       649,290          252,530
20. PEARL OIL KUALA TUNGKAL                  223,859           69,427
21. PETROCHINA BANGKO                        139,768           70,696
22. BENUO TAKA                               420,539          183,062
23. CONOCO PHILLIPS SOUTH JAMBI            3,893,380        1,073,495
24. KALILA (KORINCI BARU)                  6,251,910        3,435,890
25. MOBIL CEPU LTD                                 0             2025

Sub Total                                888,176,546      458,173,378

Offshore
1. PREMIER OIL                            52,308,670       25,842,833
2. CONOCO PHILLIPS NATUNA                166,898,288      100,640,330
3. STAR ENERGY (KAKAP)                    29,160,072       11,802,043
4. KONDUR PETROLEUM S.A                    4,423,636        3,433,291
5. CNOOC SES                              58,250,750       27,858,417
6. KODECO                                 15,389,320       11,713,237
7. ARII/BP-ONWJ                          125,389,650       53,224,700
8. CAMAR RES. CANADA                         471,980          481,230
9. CHEVRON IND. CO.                       81,252,251       32,514,470
10. CHEVRON MAKASSAR                      34,574,664       15,654,524
11. TOTAL E&P INDONESIE                1,009,972,142      491,066,468
12. SANTOS (MADURA OFFSHORE)              33,438,084       21,269,553
Hess (Ujung Pangkah)                      32,010,492       13,551,925
13. BP TANGGUH                                     0       25,942,360
14. SANTOS (SAMPANG)                               0          198,230

Sub Total                              1,643,539,999      835,193,611

Total Production Sharing               2,531,716,545    1,293,366,989

Source: ESDM, processed

Table--9
Exports of gas through pipelines, 2005-2009 *

Year       Volume     Growth     Exports    Growth
           of LNG                through
           exports              pipelines
          (MMSCFD)              (MMSCFD)

2005            --        --     168,320        --
2006      1,176,287       --     161,555        -4
2007      1,076,785     -8.5     295,669        83
2008      1,067,796     -0.8     234,964       -20
2009 *     841,911     -21.2     291,529      24.1

Note:
*) Until October 2009

Source: ESDM, Data Consult

Table--10
Indonesia's gas requirement, 2010 by areas (MMSCFD)

Areas           Sectors              2009       2010       2011

NAD             Electricity            27         27         27
(Region I)      Feedstock           180.8      180.8      180.8
                Total               207.8      207.8      207.8

Northern        Electricity           211        211        211
Sumatra         Industrial
(Region II)     fuel                   21         21         21
                Energy                8.7        8.7        8.7
                Total               240.7      240.7      240.7

Central and     Electricity       1,069.9    1,069.9    1,071.2
southern        Feedstock           335.5      335.5      335.5
Sumatra and     Fuel              1,191.2    1,188.5    1,187.6
western         Energy              481.9      473.7      464.9
Java            Total             3,078,5    3,067.6    3,059.2
(Region III)

Central Java    Electricity           193        193        193
(Region IV)     Fuel                  2.7        0.7          0
                Total               195.7      193.7        193

                                     2009       2010       2011
Eastern Java    Electricity         709.4      828.2      925.5
(Region V)      Feedstock              85        145        145
                Fuel                196.1      194.8      195.8
                Energy                 99         99         99
                Total               747.3      865.4      963.7

Eastern         Electricity          67.5       67.5       67.5
Kalimantan      Feedstock             436        436        436
(Region VI)     Fuel                    0          0          0
                Energy               49.8       49.3         45
                Total               553.3      552.8      548.5

Central part    Feedstock               0         70         70
of Sulawesi     Electricity           104        104        104
(Region VII)
                Total                 104        174        174

Southern        Electricity            38         38         38
Sulawesi
(Region
VIII)

Papua           Fuel                    2          2          2
(Region IX)

South Maluku                            0          0          0
(Region X)

Natuna                                  0          0          0
(Region XI)

Total                             5,167.3      5,342    5,426.9
domestic

Areas           Sectors              2012       2013       2014

NAD             Electricity            27         27         27
(Region I)      Feedstock           180.8      180.8      180.8
                Total               207.8      207.8      207.8

Northern        Electricity           211        211        211
Sumatra         Industrial
(Region II)     fuel                   21         21         21
                Energy                8.7        8.7        8.7
                Total               240.7      240.7      240.7

Central and     Electricity       1,071.2    1,045.8    1,031.5
southern        Feedstock           335.5      335.5      335.5
Sumatra and     Fuel              1,163.6    1,152.6    1,117.5
western         Energy              427.1      422.2      325.2
Java            Total             2,997.4    2,956.1    2,809.7
(Region III)

Central Java    Electricity           193        193        193
(Region IV)     Fuel                    0          0          0
                Total                 193        193        193

                                     2012       2013       2014
Eastern Java    Electricity         889.5      725.7      451.3
(Region V)      Feedstock             145        145        145
                Fuel                194.8      194.8      194.8
                Energy               84.2       59.4       59.4
                Total               929.9      823.2      733.5

Eastern         Electricity          67.5       67.5       67.5
Kalimantan      Feedstock             436        436        436
(Region VI)     Fuel                    0          0          0
                Energy                 45         45         45
                Total               548.5      548.5      548.5

Central part    Feedstock              70         70         70
of Sulawesi     Electricity           104        104        104
(Region VII)
                Total                 174        174        174

Southern        Electricity            38         38         38
Sulawesi
(Region
VIII)

Papua           Fuel                    2          2          2
(Region IX)

South Maluku                            0          0          0
(Region X)

Natuna                                  0          0          0
(Region XI)

Total                             5,331.3    5,183.3    4,947.2
domestic

Source: BPH Migas, Data Consult, processed

Table--11
Gas requirement by sectors (MMSCFD)

Sectors           2009       2010       2011       2012

Electricity    2,077.6    2,137.0    2,235.6    2,217.6
Fuel           1,413.0    1,407.0    1,406.4    1,381.4
Feedstock      1,037.3    1,167.3    1,167.3    1,167.3
Energy           639.4      630.7      617.6      565.0
Total          5,167.3    5,342.0    5,426.9    5,331.3

Sectors           2013       2014         Avg

Electricity    2,110.3    2,006.3     2,130.7
Fuel           1,370.4    1,335.3     1,385.5
Feedstock      1,167.3    1,167.3    1,145.63
Energy           535.3      438.3      571.05
Total          5,183.3    4,947.2     5,233.0

Source: Data Consult, processed

Table--12
Deficit in domestic gas supply

Year     Deficit for       Total deficit
        old customers    including for new
           (MMSCFD)          customers,
                              (MMSCFD)

2011          10                857
2012          95               1,070
2013         110               1,118
2014         140               1,168
2015         170               1,221

Source: Data Consult

Table--13
Several domestic gas sales and purchase agreement signed in 2009

   Sectors           Buyers            Sellers            Volume

Electricity      PT Sarana         PT Pertamina EP    6,660 MMSCFD
                 Pembangunan
                 Palembang
                 Jaya (BUMD)

                 PT Indonesia      PT Pertamina EP    8,750 MMSCFD
                 Power

                 Company of        PT Pertamina       18,250 MMSCFD
                 reg, adm of       Hulu Energy,
                 Malamoi Olom      Petrochina
                 Wobok

                 PT Gasuma         PT Pertamina       37,230 MMSCFD
                 Corporindo        Hulu Energy,
                                   Petrochina East
                                   Java

Fertilizer       PT Pupuk          BP ONWJ            62,270 MMSCFD
and              Kujang
petrochemical    Cikampek

                 PT Pupuk          PT Pertamina EP    --
                 Sriwidjaja

                 Pusri             PT Pertamina Gas
                 factory

                 JOB               PT Pertamina       --
                 Pertamina         (persero)
                 Talisman

                 PT Pertamina      PT Pertamina
                 Gas               Hulu Energy OK,
                                   Talisman OK Ltd
                                   and PT
                                   Pertamina EP,

                 PT Pupuk          ExxonMobil Oil     --
                 Iskandar          Indonesia
                 Muda,

Industry         PT Source         PT Pertamina       13.2 MMSCFD
                 Daya Kelola       EP,                (CO2) and 1,650
                                                      MMSCFD (fuel
                                                      gas),

                 PT Henrison       Petrochina Int     365 MMSCFD
                 Iriana            (Bermuda) Ltd,

   Sectors          Length of        Description
                    contract

Electricity      10 years          For electricity
                                   in Palembang

                 5 years           Power plant of
                                   Sunyaragi

                 10 years

                 6 years

Fertilizer       2 years           --
and
petrochemical

                 5 years           --

                 5 years           Gas bought from
                                   PT Pertamina
                                   Hulu Energy Raja
                                   Pempirai and PT
                                   Golden Spike
                                   Energy
                                   Indonesia,

                 --                --

                 8 years           To feed Pusri
                                   factory

                 --                --

Industry         10 years          --

                 1 year            --

Source: BP Migas, Data Consult

Table--14
Several contract with domestic gas buyers through pipelines

Agreements          Sellers                  Buyers

HoA           PT Pertamina           PT, Pertamina EP
              (Persero)

HoA           Petrochina             Company of Sorong
              International          district adm,
              Bermuda Ltd,           (PT,Malamoi Olom
                                     Wobok)

HoA           Kodeco Energy Co,      Company of Gresik
              Ltd,                   district adm (PT,
                                     Gresik Migas)

PJBG          PT, Pertamina EP       PT,Pelangi Cakrawala
                                     Losarang

PJBG          PT, Pertamina EP       PT, Tossa Sakti

PJBG          PT, Pertamina EP       PT, Medco E&P
                                     Indonesia

Total

Agreements      Volume             Note
               (MMSCFD)

HoA              65,359    For NGL project in
                           South Sumatra (E1-
                           Pertagas),

HoA               1,460    For power plants in
                           Sorong regency,

HoA                        For factory in
                           Gresik regency,

PJBG              6,230    For factory in
                           Losarang, West Java,

PJBG              1,460    For factories
                           Central Java,

PJBG           1,395.96    To help pump out oil

Total         75,904.96

Source: BP Migas

Table--16
Natural gas transmission pipeline in operation

Transmission lines          Length    Capacity
                              (km)    (MMSCFD)

South Sumatra--West Java     1,000          --
Medan                          145          --
Grissik--Duri                  536         420
Grissik--Singapore             477         350
Total                        2,158         770

Source: PGN
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Title Annotation:OIL AND MINING
Comment:Development of natural gas industry in Indonesia.(OIL AND MINING)
Publication:Indonesian Commercial Newsletter
Article Type:Statistical data
Geographic Code:9INDO
Date:Feb 1, 2010
Words:6900
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