The gas production from the national strategic project (PSN) Jambaran Tiung Biru (JTB) is currently hovering around 110 million standard cubic feet of gas (MMscfd), significantly below its production capacity of 192 MMscfd. Endro Hartanto, CEO of Pertamina EP Cepu, revealed that the company had to curtail production from the JTB field due to limited buyer capacity.
Operating at a capacity to deliver 192 MMscfd, JTB faced the necessity to reduce supply owing to market limitations. Pertamina had previously secured gas sales agreements (PJBG) for the JTB field with key buyers such as PT Perusahaan Listrik Negara (Persero) or PLN for 100 MMscfd, PT Perusahaan Gas Negara Tbk. (PGAS) for 72 MMscfd, and PT Petrokimia Gresik for 15 MMscfd to 19.8 MMscfd (swing). The remaining gas, approximately 0.2 MMscfd, is directed towards the Lamongan gas network.
Endro underscored that all gas from JTB has been contracted or has buyers, and Pertamina is not in a position to offer the gas to new buyers. “Optimizing JTB gas absorption requires commitment from PLN, PGN, and PKG [PT Petrokimia Gresik] who already have gas allocations and have signed PJBG,” he reiterated.
In parallel efforts, the Upstream Oil and Gas Regulatory Special Task Force (SKK Migas) is actively exploring alternatives for utilizing the excess gas supply from oil and gas fields in East Java. These alternatives include the construction of a mini liquefied natural gas (LNG) plant, compressed natural gas (CNG), and redirection towards liquefied petroleum gas (LPG).
Kurnia Chairi, Deputy for Finance and Commercialization at SKK Migas, emphasized that the organization is rigorously evaluating these options, with a focus on fostering the growth of new industries such as methanol plants to absorb the surplus gas supply.
Based on SKK Migas data as of October 2023, gas lifting from fields in East Java averaged 747 MMscfd, while the absorption capacity from downstream industries such as PLN, PGN, Petrokimia Gresik, and other consumers stood at approximately 565 MMscfd. SKK Migas projects that specific gas working areas in East Java will reach peak production between 2024 and 2026, leading to an anticipated oversupply of 200 MMscfd in the region.
The excess supply is expected to originate from various prospective fields, including Jimbaran Tiung Biru, HCML Sampang, Medco Paus Biru, PCK2L Bukit Panjang Sampang, Energi Mineral Langgeng Sumenep, and MGA Utama Energi Sumenep.
