Natural Gas Supply Is Guaranteed To Be Safe 77 Percent Allocated For Domestic, Here Are The DETAILs!

JAKARTA - The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) conveyed its support for the use of gas for domestic purposes.

Based on data for lifting (gas lines) as of March 2024 which amounted to 5,367.7 billion British thermal units per day (BBTUD), 4,109.6 BBTUD or 77 percent were allocated to the domestic market and the excess was 1,258.1 BBTUD or about 23 percent were exported. This reflects that the natural gas supply for domestic is ensured safe.

Head of the SKK Migas Program and Communication Division, Hudi D. Suryodipuro, said that in allocating domestic gas supply, SKK Migas adheres to existing regulations. Among other things, Ministerial Regulation Number 6 of 2016 concerning the provisions and procedures for determining allocation and utilization as well as natural gas prices, Decree of the Minister of Energy and Mineral Resources Number 91.K/MG.01/MEM/2023 concerning Certain Natural Gas Users and Certain Natural Gas Prices in the Industrial Sector as well as other related provisions.

In terms of the industrial sector, the largest domestic gas users are the fertilizer industry and the electricity industry, which are 12.39 percent and 12.32 percent, respectively.

As for the combination of various industries such as petrochemicals, olechemicals, steel, ceramics, glass glasses, rubber gloves and others, it reached 35.15 percent. The utilization of gas for domestic LNG was 11.69 percent, while gas used for oil lifting purposes reached 3.26 percent.

"Other domestic utilization include domestic LPG, gas fuel (BBG), city gas (jargas)," said Hudi, quoted on Thursday, May 9.

Hudi said that the use of gas is very widespread, starting from households, various industries to transportation. The energy transition will place the role of gas more strategically and gas consumption in the future will increase. Hudi hopes that there must be involvement from all stakeholders, including midstream and downstream industry players because the increasing trend of gas production will continue in the future so that reliable gas network infrastructure and adequate markets are needed.

"This is so that, as gas production increases in the future, gas infrastructure must be prepared, so that when the upstream oil and gas project is completed, the gas user industry can connect to gas sources upstream," added Hudi.

Hudi further said that the Government's commitment to prioritizing the use of gas in the domestic area is to create greater added value for the economy, build energy security and also food security. Quoting data from the Ministry of Energy and Mineral Resources (ESDM), related to the use of gas in the fertilizer industry, the adequacy of gas supply for the fertilizer industry provides great economic benefits and becomes the industrial sector that uses the largest natural gas input, which is 58.48 percent in its production costs.

"Government support for industries related to the needs of many people such as the fertilizer industry, the positive impact is felt for increasing production, sales, taxes and in gas absorption," concluded Hudi.