SKK Migas Instructs WK To Leave 20 MMSCFD Gas For South Sulawesi Electricity Supply

JAKARTA - The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) has instructed the cooperation contract contractor (KKKS) Energi Equity Epic Sengk (EEES) to immediately distribute gas supplies from the Sengkang Working Area (WK) to PLN.

Head of the Program and Communication Division, SKK Migas, Hudi D. Suryodipuro said this step was taken considering the existence of a commercial agreement between parties involved in the gas flow process that can be used for re-streaming natural gas from WK Sengkang and considering the emergency condition of electrical energy in the South Sulawesi Region due to the burning of PLTU Jeneponto on Sunday, March 19, 2023.

"On March 21, 2023, around 20 million standard cubic feet per day (MMSCFD) will flow to PLTGU (gas/vapor) Sengkang," he told the media quoted on Friday, March 24.

Hudi hopes that the natural gas supply will ensure the electricity supply for the people of South Sulawesi, especially those who carry out Ramadan fasting. In addition, the absorption of gas supports the operation of upstream oil and gas business activities to achieve the natural gas lifting target by 2023 while maintaining the investment climate of the national upstream oil and gas industry.

SKK Migas asked EEES and PLN to immediately finalize the agreement needed for the flow of the gas in question. The flow is also carried out while prioritizing the safety and security aspects of the operation.

Currently, EEES and PLN are conducting intensive discussions in order to reach an agreement on prices and supplies in accordance with WK Sengkang's production capabilities.

"SKK Migas encourages the agreement to be resolved immediately, taking into account the economic plan to develop the Sengkang WK gas field," said Hudi.