This Is SKK Migas' Strategy To Develop Gas Fields In Indonesia

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

JAKARTA - The Special Task Force for Upstream Oil and Gas Activities (SKK Migas) stated that the gas field development strategy in Indonesia plays an important role in improving Indonesia's economy in the future.

Head of the Oil and Gas Commercialization Division of SKK Migas Rayendra Sidik said that the development and commercialization of the gas field currently refers to the energy triemma, namely security of supply or resilience (of the energy itself), affordability or affordability (the ability of anyone in the are to be able to pay for and buy that energy), and sustainability or environment.

"Currently, gas products are not clean products, yes, only among all hydrocarbons do we know that natural gas is the product that has the smallest carbon footprint, so gas is currently used as transitional energy until we manage to enter the period using renewable energy," said Rayendra, Monday 24 June.

Meanwhile, said Rayendra, Indonesia's economy can be seen as research from the International Monetary Fund (IMF), Indonesia has entered the ranks of the top 20 (ranked 16) countries with the largest global economy in 2023. In 2023, the value of Indonesia's GDP is projected to reach 1.4 trillion US dollars.

This figure is equivalent to 1.4 percent of the total global GDP, and places Indonesia in the 16th place in the world.

According to Rayendra, this increase in GDP is one of the uses and utilization of non-renewable energy.

"So we have energy, what do we want to do? Well, here our dilemma is in utilizing gas, what do we want to do with natural gas? Do we make it as fuel, fuel, or we make it, let's say we add add add family, feedstock," said Rayendra.

Because, he continued, most developed countries in the world are industrial countries. For this reason, this natural gas is a reserve that is said to be non-renewable, which in time will run out, it must be optimized by its nature.

Rayendra explained that the strategy of natural gas commercialization to support SKK Migas' long-term vision was divided into two, namely the pull strategy and push strategy.

"For future gas field development, we are trying to use this pull strategy and push strategy," he said.

According to Rayendra, the pull strategy is a commercialization strategy aimed at developing demand closer to supply.

"Actually, if we have a large enough reserves, we try to pull the demand closer to the reserve. So, hopefully, if our generator builds a power plant in front of our gas field, then our house will be built and the electricity will be transmitted, then if the reserves are quite large, we hope that we can develop a petrochemical industry that uses this strategy," he continued.

Meanwhile, the push strategy is a strategy that aims to develop transportation modes so that the fulfillment of natural gas needs from supply to existing demand can run.

"The push strategy is how we encourage gas from excess areas with gas to be distributed to other regions. Well, for this push strategy, we really need a lot of infrastructure available," he said.

Rayendra added, in commercializing gas reserves, his party discussed with various parties to utilize gas in this country optimally, both for buyers, midstreamers, transporters, and even for citizens of the world.

In the future, said Rayendra, the push strategy carried out by SKK Migas is expected to become a kind of locomotive to improve the Indonesian economy.

Meanwhile, several pull strategies, namely the development of the petrochemical sector, especially in Eastern Indonesia, the potential for DME development to reduce LPG imports, and the potential for GTL development and smelter development.