Gas Supply In East Java And Central Java Excessively, SKK Migas Is Looking For Buyers

JAKARTA - The Special Task Force for Upstream Oil Business Activities (SKK Migas) revealed that the excessive gas supply in East Java is increasing. To overcome this condition, SKK Migas is pursuing an increase in the number of offtakers in the industrial sector.

Head of SKK Migas Representative for Jabanusa Nurwahidi revealed that downstream industries in East Java and Central Java were unable to absorb the growing gas supply.

As of October 2023, continued Nurwahidi, the production or gas lifting position is at the level of 747 million standard cubic feet per day or the Million Standard Cubic Feet per Day (MMSCFD). Meanwhile, the average absorption capacity of PLN to Petrokimia Gresik is around 565 MMSCFD.

"Try to imagine the liftability of 747 but the average breakfast capacity is only 565. Later we can consolidate these figures, but around that. This means that there is still a lot of gas in the Greater Java or East Java, Central Java, which cannot be absorbed by the market," he said in the Gresik Manyar Industrial Estate, East Java, written Tuesday, November 28.

Therefore, Nurwahidi said that his party encourages more commercialization or gas sales to buyers. That way, he continued, the number of productions could also be increased.

"This is a challenge for us to commercialize how to sell these gases more to buyers or buyers so that they can increase lifting," he said.

Nurwahidi said the gas supply can be used by the fertilizer industry. Then, it can also be used for power plants. It can even be used as household gas to replace LPG.

"So this gas is one of four sources of energy that can be said to be relatively environmentally friendly compared to oil and coal. Relatively cheaper than oil. Especially now that compared to EBT is still cheaper," he explained.