State gas distributor PT Perusahaan Gas Negara (PGN) is seizing the opportunity to optimize the gas supply potential from the Andaman Block through the construction of the Dumai-Sei Mangkei gas pipeline, funded by the state budget (APBN).
The pipeline infrastructure in Sumatra is set to become more integrated, aiming to maximize the utilization of gas from Andaman.
PGN’s Director of Strategy and Business Development, Rosa Permata Sari, said on Monday, September 9, 2024 that the Dumai–Sei Mangkei pipeline would add flexibility to gas distribution, especially to meet potential demand in North and Central Sumatra.
The pipeline will support industries such as power plants, fertilizer and smelter facilities, refineries, and other industries.
Additionally, there are new industrial projects that will increase gas demand, including blue ammonia, Inalum’s smelter, RU Dumai, and methanol plants.
Rosa emphasized the strategic importance of the Andaman Block for PGN and its subsidiary, PT Perta Arun Gas (PAG), particularly for the utilization of the Arun LNG facility.
PAG is conducting preliminary studies to assess the potential of using LNG Train 4 and Train 5 at the Arun facility, with an estimated 30-month engineering, procurement, and construction (EPC) period.
PGN and PAG will continue evaluating the gas composition to fully utilize the gas reserves from the Andaman Block.
In the near future, PGN plans to engage in intensive discussions to explore the full potential of Andaman’s gas resources, covering expected volumes and long-term production timelines.
Andaman gas discoveries
In the past year, two significant gas sources were discovered in the South Andaman Block. The first major discovery was made by the Upstream Oil and Gas Regulatory Task Force (SKK Migas) and Abu Dhabi-based Mubadala Energy through the Layaran-1 exploration well, located about 100 kilometers offshore from Northern Sumatra.
The well, drilled to a depth of 4,208 meters, uncovered a vast gas column of over 230 meters in a high-quality sandstone reservoir, with a flow rate of 30 million standard cubic feet per day (mmscf/d).
The Layaran-1 well has been reported to have an estimated potential of 6 trillion cubic feet (tcf) of gas, making it one of the largest discoveries in the world, alongside Geng North-1 in the Kutai Basin.
Following this, in early 2024, SKK Migas and Mubadala Energy announced another major gas discovery from the Tangkulo-1 exploration well, located 65 kilometers offshore Northern Sumatra.
Tangkulo-1 was drilled to a depth of 3,400 meters and confirmed an 80-meter gas column in a high-quality sandstone reservoir. The well successfully flowed 47 mmscf/d of gas and 1,300 barrels of condensate, with potential capacities estimated at 80-100 mmscf/d and over 2,000 barrels of condensate.
These discoveries are poised to play a critical role in securing Indonesia’s energy supply and supporting PGN’s strategic goals.
