In anticipation of the increased demand for domestic gas in the coming years, the country is planning to allocate as much as 644 cargoes of liquefied natural gas (LNG), SKKMigas, the oil and gas regulator, said.
SKKMigas head Rudi Rubiandini said in a statement that he did not want to increase the allocation while the supporting infrastructure is not ready.
“We don’t want to have a situation where the domestic LNG delivery could not be fulfilled due to the unfinished gas infrastructure projects.”
The top official was referring to the constructions of gas terminals scheduled to be finished in the coming years.
SKKMigas said on Monday the supply of LNG for domestic consumption would be delivered from several big projects, including the Indonesia Deep Water Development (IDD) project by US-based Chevron and the Jangkrik field in Muara Bakau block operated by Italian firm Eni.
The IDD project is expected to begin production in 2018, with an expected output of 1.1 billion cubic feet per day (bcfd) of natural gas, while the Jangkrik field is targeted to produce 100,000 barrels of oil equivalent per day (boepd)
by 2016.
Aside from the two projects, located in the Makassar Strait off Sulawesi, British giant BP’s Tangguh facility in Teluk Bintuni, West Papua, is also on SKKMigas’s list
As of this year BP would deliver 5 LNG cargoes to the West Java FSRU and 7 LNG cargoes to the Arun LNG plant from its Tangguh facility in West Papua.
In 2014, BP would allocate 12 LNG cargoes for the West Java FSRU, 8 cargoes for the Arun LNG plant and 7 cargoes for the Lampung FSRU.
In 2017, BP would allocate 19 LNG cargoes for the West Java FSRU, 12 cargoes for the Arun plant and 10 cargoes for the Lampung FSRU.
In 2021, the Tangguh’s LNG allocation will surge as the plant’s third LNG train is expected to finish construction.