Have A Potential Of 200 Thousand Tons Of Elpiji, Jambi Block Can Product Revenue Of IDR 3.75 Trillion Per Year

PALEMBANG - A Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) revealed that Jambi Merang's working area managed by PT Pertamina Hulu Energi stores an LPG potential of up to 200 thousand tons per year. Head of SKK Migas Dwi Soetjipto said that this potential can be utilized to increase the value of gas that has been channeled through pipes as well as save foreign exchange because it reduces LPG imports. "Currently, the potential for Jambi gas production is Merang 130 million cubic feet per day (MMSCFD) and our hope can be increased to 180 MMSCFD. (the total production) can produce 200 thousand tons of LPG per year, so I think it can really help our Elpiji production (Indonesia)," he said, quoted by Antara, Wednesday, December 28. If the rich gas is channeled through a pipeline, the price is 6 US dollars per million British thermal unit (MMBTU). Meanwhile, if the rich gas is processed into LPG and the condensate costs three times higher than pipeline gas. Dwi said that Indonesia has several fields rich in gas potentials contained in LPG. However, so far LPG has only been channeled or sold in the form of pipelines. He suggested to the upstream oil and gas companies to separate the LPGGs contained in rich gas, so that LPGs can be sold at a higher price and reduce LPG imports. "See the existing data, our focus in 2023 is that the rich gas should be increased with investment to be able to separate LPG. Here it is possible that we can invite other private parties to be able to contribute to investment in LPG facilities," said Dwi.

He said that Indonesia has quite a lot of oil and gas working areas that contain LPG, but the blocks that are rather large so far are only Jambi Merang. Other working areas with a projected small LPG potential, so SKK Migas encourages the construction of hubs among all working areas that have the potential for LPG.

If the potential 200 thousand tons of LPG per year contained in the Jambi Merang working area can be utilized optimally, with the economic price of LPG, which currently reaches IDR 18,500 per kilogram, it can produce IDR 3.75 trillion per year. This figure can reduce Indonesia's foreign exchange burden due to imports of LPG. "We must separate this gas first so that we can sell LPG at a higher price and at the same time reduce imports of LPG," concluded Dwi.

Jambi Merang Block is an oil and gas working area located in Jambi Province and South Sumatra Province. On February 9, 2019, Pertamina Hulu Energi officially transferred the management of 100 percent of the block from the Joint Operating Body Pertamina - Talisman Jambi Merang (JOB PTJM). Through this transfer of management, Jambi Merang Block was operated using a gross split scheme starting from February 10, 2019 to February 9, 2039. The company obtained 43 percent of oil sharing and the government received 57 percent. Then, Pertamina received 48 percent of natural gas yields and the government received 52 percent.