Optimize The Potential For Natural Gas, BPH Migas And SKK Migas Requesting Local Government Support

BPH Migas and SKK Migas cooperate with local governments to optimize the use of natural gas in East Java and Central Java. (Photo: Doc. Ministry of Energy and Mineral Resources)

JAKARTA - The Downstream Oil and Gas Regulatory Agency (BPH) together with the Oil and Gas Special Task Force for the Implementation of Upstream Business Activities (SKK) hopes for local government support, especially in East Java and Central Java (Central Java) regions in optimizing the use of natural gas.

For information, currently the working areas of the KKKS Java, Bali and Nusa Tenggara (Jabanusa) have contributed around 203,000 Barrel of Oil Per Day (BPOD) or 35 percent of petroleum production and around 560 million standard cubic feet per day (mscfd) or 10 percent of natural gas production nationally.

The BPH Migas committee, Wahyudi Anas explained, in East Java and Central Java, natural gas transmission pipes have been installed with a very large capacity, making it easier to develop an integrated, structured network of natural gas distribution pipes to attract new investors in the industrial sector in need.

"This of course requires the support of all parties, one of which is the ease of licensing in the development of the new region," he said at the Gas Expo 2022 activity, Thursday, September 1.

Furthermore, Wahyudi said, this agenda cannot be separated from coordination with local governments, both Province and City/Regencies in East Java and Central Java, together with business entities in the upstream and downstream sectors providing natural gas, to be used as a plan in developing natural gas infrastructure in special economic industrial areas to the construction of other commercial city gas networks that really need natural gas energy.

By meeting all parties on Gas Expo activities in 2022, it is hoped that it can create a synchronization between upstream and downstream natural gas business so that communication networks and agreements between suppliers and users of natural gas are realized, as well as information about the potential for sustainable supply and demand of natural gas.

"With this meeting, the business opportunities created can be realized so that the increase in the use of domestic natural gas can be achieved", concluded Wahyudi.

The East Java Provincial Government also positively welcomed this activity. Deputy Governor of East Java Emil Elestianto Dardak optomis industrial gas needs in East Java will be met.

This happened after a number of gas wells were produced this year. Gas energy in East Java will be high due to the need for gas for industry and households to continue to grow.

One company that needs gas energy is quite large, such as the Freeport glass and smelter industry in the JIIPE Gresik SEZ.

"And we also convey that the distribution of gas in East Java has available facilities such as pipeline networks that have not been fully connected between cities and regencies and industrial areas spread across the East Java Region. Then the distribution of natural gas with CNG trucking can also be developed massively to provide natural gas in several industrial areas," said Emil.

For information, the potential for this 500 mmscfd will be generated from 8 Oil and Gas Cooperation Contract Contractors (KKKS). Several gas projects that will be onstream and have the potential to provide additional natural gas production of around 500 mmscfd are Jambaran Tiung Biru-PEPC which will produce the largest gas, which is around 192 mmscfd. HCML with MCA/MDH wells around 120 mmscfd and MAC as much as 50 mmscfd.

Dan Medco dengan lapangan Papar Biru sebanyak 30 mmscfd. Sumur RBG yang dikelola TIS petroleum sebanyak 15 mmscfd. Serta Kris Energy dengan lapangan Lengo sebanyak 70 mmscfd.

As well as ENC exploration wells managed by EML as much as 30 mmscfd. Bukit Panjang Field managed by PCK2L as much as 50 mmscfd and several other gas projects.