Earth Gas Lifting Reaches 92 Percent Of The State Budget Target, Here's Why!

Natural gas (Photo: Antara)

JAKARTA - The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) reports that until now gas lifting has reached 92 percent of the APBN target.

According to the 2024 State Budget target, natural gas lifting is set at 5,785 MMSCFD (million cubic feet per day). As of June 19, 2024, the achievement of natural gas distribution is at 5,305 MMSCFD or about 92 percent of the APBN target.

"What I need to emphasize is that this target has not been achieved, not only because of the KKKS' inability to produce natural gas. The reason is, in some areas there are gas that cannot all be utilized," said Deputy Head of SKK Migas Shinta Damayanti, quoted Monday, June 24.

For example, explained Shinta, in the East Java region, in 2024, the ability to supply KKKS with the absorption of buyers has a fairly large gap, almost 100 MMSCFD every day cannot be absorbed. The same thing happened in the Natuna region with a volume that was not far apart from the East Java region, around 90 MMSCFD.

"This condition is a lesson for all of us, a careful plan is needed so that optimal natural gas absorption, because different characteristics of natural gas from petroleum, once produced must be distributed," he said.

Seeing these conditions, he said, SKK Migas encourages natural gas commercialization with PUSH and PULL strategies. PUSH is a commercial strategy that aims to deliver gas to the center of need using infrastructure, such as pipes, small and medium-scale LNG refineries, regasification terminals, and others.

Meanwhile, PULL is a commercial strategy aimed at developing needs near natural gas sources, such as the construction of petrochemical industries, smelters, power plants, and others.

"With these two strategies, we hope that the natural gas reserves found can be produced and distributed optimally for domestic fulfillment," he said. Therefore, his party invites all natural gas stakeholders, especially from the KKKS and buyers to look for and explore out of the box steps that can increase natural gas lifting in the short term.

"The government, especially SKK Migas, is ready to support these efforts to be implemented," concluded Shinta.