SKK Migas Asks Earth Gas Manufacturers To Start Exploring Potential In West Java

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) to start exploring potential in West Java.

Head of the Natural Oil and Gas Commercialization Division of SKK Migas Rayendra Sidik said the demand for natural gas in West Java is relatively large, but it is not balanced with supply.

"There is still market demand (demand) that has not been fulfilled," he said at the 2024 Earth Gas Forum in Bandung, West Java, quoted from Antara, Thursday, June 20.

So far, most of the natural gas needs in West Java are facilitated by supplies from Sumatra. In addition, also with liquefied natural gas (LNG) used by PLN and supplied through pipes owned by PT Pertamina Gas Negara Tbk.

Indeed, there are a number of projects that are being worked on by the KKKS to fill the needs of natural gas in East Java and West Java. One of them is the construction of the Cirebon Semarang (Cisem) pipeline. Currently, the pipes that have been built are the existing pipes from Kangean Island, Gresik Semarang, and Cisem Phase I. The second phase of development is targeted to start in July 2024 and finish in December 2025.

However, according to Rayendra, the natural gas that will be brought to West Java is a production from East Java that has not been optimally utilized.

In fact, if the gas demand in West Java can be met, then the gas supply from Sumatra can begin to be reduced so that it can focus on being allocated to Batam, which also has high demand.

"Our message to gas manufacturers is very open demand. Don't wait anymore," he said.

In the same event, Deputy for Finance and Commercialization of SKK Migas Kurnia Chairi said the natural gas deficit in West Java reached 144 MMSCFD (million cubic feet per day) as of 2024.

Meanwhile, East Java will most likely experience a gas surplus from 2024 to 2025.

Buyers of natural gas in West Java are optimistic in accelerating market development because they believe that natural gas supply will be sustainable. This effort is only the first step, it requires active coordination and communication, as well as support from all parties to ensure efficient and equitable gas distribution," added Kurnia.