SKK Migas Asks Gas Manufacturers To Produce As Much As Possible, Due To The Large Impact Of Needs

Head of the Oil and Gas Commercialization Division of SKK Migas, Rayendra Sidik. (Photo: Doc. ANTARA)

JAKARTA - The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) has asked natural gas producers or Cooperation Contract Contractors (KKKS) not to delay the project to be carried out.

The reason is, the potential for natural gas needs in the country is quite large.

Moreover, the government also continues to encourage infrastructure development so that the existing natural gas supply can be distributed properly.

Head of the Oil and Gas Commercialization Division of SKK Migas, Rayendra Sidik, said that currently there is a discourse that Indonesia has a gas pipe from Aceh to the end of Java, some of which have been built.

"But there are several sections that have not been connected, namely the Cisem 2, Dumai-Sei Mangke, and Natuna-Batam Island," said Rayendra, quoted on Thursday, June 20.

Rayendra said the largest natural gas demand was on the island of Java.

However, national natural gas production is not only on the island of Java, so this is a challenge that must be met to bring natural gas to the center of demand.

"The largest fertilizer demand in West Java, Kujang Fertilizer in Cikampek, electricity is the Java I PLTGU and the industrial sector," he said.

According to Rayendra, the need for gas in West Java is not only met from West Java, but also from outside, especially Sumatra.

Apart from being supplied from outside, namely with liquefied natural gas (LNG) used by PLN, some of the others are supplied through pipes owned by PT Pertamina Gas Negara Tbk.

"But there are still demands that have not been fulfilled. For this reason, there is a chance that gas from East Java will be brought to West Java," he added.

This gas will later be distributed through the Cirebon-Semarang (Cisem) pipeline. Currently, the pipes that have been built are existing pipes from Kangean, Gresik-Semarang, and Cisem Islands Phase I.

Meanwhile, Phase II of Cisem is planned to start construction this year and can be operated by the end of 2025.

Rayendra revealed that natural gas to be brought to West Java is a production from East Java that has not been optimally utilized.

In fact, for long-term plans, there are projects that are being investigated by the KKKS to be able to fill the needs of natural gas, both in East Java and West Java.

"East Java and Central Java gas producers, some of the gas produced, the market is ready to accommodate. With the existing pipes, gas can be distributed to West Java," he said.

Rayendra added that after the gas demand in West Java can be met, the gas supply from Sumatra can begin to be reduced. The gas can be allocated to Batam, whose needs are also high.

"Our message to gas manufacturers is that demand is very open. Don't wait anymore. We have prepared as much production as possible," he said.

On the same occasion, the Director of Oil and Gas Infrastructure Planning and Development at the Ministry of Energy and Mineral Resources, Laode Sulaeman, said that despite the great efforts to encourage the use of New and Renewable Energy, extra effort is needed.

This can be seen in the national energy mix where natural gas has an important role as transitional energy.

"So in the future natural gas is still needed," he said.

Along with that, said Laode, the government has a plan to connect the gas pipeline from Aceh to East Java, so that from wherever the gas supply comes, it can be distributed.

"So when big blocks like the Andaman Block are already produced, the gas can later be distributed to Java," he said.