The Upstream Oil tatedand Gas Regulatory Task Force (SKK Migas) confirms that the decision to build a novel liquefied natural gas (LNG) facility in the vicinity of Aceh will be contingent upon the fulfilment of the development blueprint (PoD) for Andaman II and South Andaman Blocks.
Hudi D. Suryodipuro, Head of Program and Communication Division at SKK Migas, said validation of significant gas reserves in offshore Aceh portfolio is still pending. “Infrastructure, including the construction of an LNG plant, will be addressed after the completion of the PoD,” said Hudi on Monday.
The notable gas discoveries in Andaman II and South Andaman Blocks have prompted discussions on the need for a new LNG plant in the vicinity of these gas fields. The discoveries, particularly in the Andaman II block, have shown substantial potential, with estimates ranging from 5 to 6 trillion cubic feet (Tcf) of gas resources.
The exploration activities conducted by Harbour Energy & Mubadala Energy have identified significant gas resources, including Premier Oil’s discovery of 80 million barrels of oil equivalent (MMboe) in contingent resources. In addition, Mubadala Energy found a 6 Tcf gas potential in the South Andaman Block in late 2023.
The Ministry of Energy and Mineral Resources is considering the construction of a new LNG plant in Aceh to anticipate potential excess gas supply from the Andaman offshore portfolio. Minister Arifin Tasrif highlighted the need for a new LNG facility, emphasizing that the existing Arun LNG plant in Aceh might not be sufficient to absorb the significant gas potential.
The potential gas reserves of 11 trillion cubic feet (Tcf) have prompted discussions about building a new LNG plant to accommodate this substantial resource. “The existing Arun LNG facility may not be sufficient to absorb such a large potential,” said Arifin on Friday. In light of this, he emphasized the necessity for a new LNG facility in the region.
