The administration of Joko “Jokowi” Widodo has ensured support for fulfilling the supply of natural gas to PT Perusahaan Gas Negara (PGN) with liquefied natural gas (LNG) following the occurrence of a gas deficit in Central Sumatra, South Sumatra, and Western Java.
Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said the government would add 11 LNG cargoes to PGN at the beginning of this year.
“Gas deficit is also the government’s concern because demand for electricity is increasing,” Arifin said on Thursday, March 14, 2024.
The plan to supply 11 LNG cargoes to PGN originates from the LNG refinery at the Tangguh gas field, Bintuni Bay, West Papua. Arifin revealed that the reduction in PGN gas deliveries to industries in the western region is due to the decrease in gas transport from several oil and gas fields in South Sumatra. For example, the decrease in natural gas supply from the Corridor Block, South Sumatra, operated by PT Medco Energi Internasional (MEDC).
In early 2024, the Corridor Block was only able to supply about 440 million standard cubic feet per day (MMscfd) of gas to PGN. The actual gas supply realization from the Corridor block in 2024 decreased compared to 2022 and 2023, which reached 850 MMscfd.
“There is a supply deficit from the western region, so we are accelerating the Cirebon-Semarang pipeline,” Arifin explained.
The Ministry of Energy and Mineral Resources stated that the decrease in gas pipeline supply is a result of the continuous decline in gas production from existing wells that are already old.
PGN Company Secretary Rachmat said PGN will meet gas supply to customers with LNG. He estimated that specifically for customers in the three aforementioned regions during the period of 2024-2034, the additional supply of LNG re-gasification gas needed is around 73 billion British thermal units per day (BBtud) – 355 BBtud.
These estimates are equivalent to 12 percent to 54 percent of the total gas supply for PGN customer demands in Central Sumatra, South Sumatra, and Western Java.
“We hope customers can understand this evolving situation. In the future, gas supply fulfillment will rely more on LNG considering that domestic gas sources are also located in areas that can only use LNG facilities,” said Rachmat.
