SKK Migas Make Sure The Gas Supply For The Full Pupuk Industry

Deputy of Finance and Commercialization of SKK Migas, Kurnia Chairi. (Photo: SKK Migas Doc)

JAKARTA - The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) ensures that the gas needs for the fertilizer industry can be met amid high supply needs.

Deputy of Finance and Commercialization of SKK Migas, Kurnia Chairi said, in order to support the Government's policy of prioritizing domestic needs, SKK Migas and Cooperation Contract Contract Contractors (KKKS) continues to increase the allocation of gas supply for domestically which continues to increase.

If in 2003 the realization of gas distribution for domestic is 25 percent, then in 2021 it will increase to 64 percent, and this year it has reached 69 percent.

"As a form of support for government policies to meet domestic gas needs, we ensure that domestic gas supply in 2023 will be met and get priority," he told the media in Jakarta, Friday, December 9.

Based on the calculation of SKK Migas, he continued, the gas supply capability for 2023 will be higher than in 2022 considering that currently it is onstream for national strategic projects (PSN) upstream of the Jambaran Tiung Biru oil and gas operated by Pertamina Cepu in Bojonegoro and the MBA-MDH project operated by HCML in Madura.

Regarding the need for gas supply for the fertilizer industry in 2023, Kurnia said that based on the calculation of SKK Migas, the need for gas for the fertilizer industry in 2023 can be met.

Kurnia added that the position of gas supply for Pusri Palembang with a gas requirement of 190 MMSCFD was met. Then Pupuk Kujang Cikampek's 101 MMSCFD status was met.

Furthermore, regarding the need for Gresik Petrokimia of 141 MMSCFD, its status was met.

Kurnia added, for Pupuk Kalimantan Timur, the need for 335 MMSCFD status was met.

As for the Pupuk Iskandar Muda (PIM) 2 factory, the needs of 50 MMSCFD status are met.

Meanwhile, the Pupuk Iskandar Muda (PIM) 1 factory, which has just been reactivated, has met its gas needs until December 2022.

For the needs of 2023, PIM originally planned through imports, but the current high international price can make projects less economical.

For this reason, based on the Indonesian gas balance in 2023, the need for PIM-1 gas supply volume of around 55 MMSCFD can be met from the potential for uncommitted cargo in 2023 as many as 9 cargoes, which can be used, among others, to meet the needs of PIM 1 gas ranging from 5 cargoes.

The amount of uncommitted cargo does not include the potential additional gas supply from Tangguh Train 3 which will carry out the decommissioning process at the beginning of next year.

Previously, when the PIM 1 factory was tested for re-activation this year, we had met the gas supply needs at that time according to the submission given to SKK Migas of 2 cargoes. If 2023 requires gas, it can be fulfilled from uncommitted cargo because uncommitted cargo is still greater than the need for PIM 2, explained Kurnia.

The fulfillment of this gas supply will certainly depend on prices and schedules, which will be discussed soon after the PIM management officially conveys to SKK Migas.