PT Perusahaan Gas Negara (PGN), together with Conrad Asia Energy Ltd (ASX:CRD), is exploring the possibility of constructing a mini LNG plant in connection with the effort to commercialize gas from the Meulaboh & Singkil Blocks, offshore Aceh.
“Currently, PGN and Conrad are in discussions for the plan to build a mini LNG plant related to the commercialization of gas from Conrad Asia in ONWA and OSWA,” PGN Corporate Secretary Rachmat Hutama said when confirmed on Sunday, April 29, 2024.
In the future, Rachmat stated, the potential supply of new gas from the Meulaboh or Offshore North West Aceh (ONWA) and Singkil or Offshore South West Aceh (OSWA) Blocks will be directed to cover the gas pipeline deficit currently occurring in several fields contracted with the state gas company.
Some fields experiencing a decrease in gas supply include the Corridor Block, PEP South Sumatra (Regional 1), PEP West Java (Regional 2), PHE Jambi Merang, and several contractors operating in the area.
“This LNG will be used by PGN to meet customer needs related to the decrease in gas pipeline supply,” he said.
However, he said, the planning of investment in mini LNG plant infrastructure is still in the discussion stage with Conrad, including the parties that must invest in the development of the gas infrastructure. “It has not been decided [who will invest], this is also under consideration,” he said.
As previously reported, Conrad is considering selling part of its participating interest (farm-down) in the Meulaboh and Singkil Blocks. This consideration arose after several oil and gas companies showed interest in joining exploration activities in the deep sea blocks of Aceh.
“The gas project in Aceh has developed rapidly from what we expected, with third parties showing interest in our deep sea discoveries,” Conrad Managing Director and Chief Executive Officer, Miltos Xynogalas, said as quoted from disclosure information, on Monday, April 29, 2024.
Moreover, according to Miltos, the attractiveness of the Meulaboh and Singkil Blocks is further strengthened by successful gas discoveries in the Andaman Sea, which are adjacent to the two fields.
Conrad holds 100 percent ownership of the Meulaboh and Singkil Blocks, granted by the Ministry of Energy and Mineral Resources (ESDM) in January 2023. The two blocks cover an area of approximately 20,000 square kilometers, with each contract having a term of 30 years.
Last year, Conrad announced the initial identification of prospective gas resources or probability reserves (P50,100 percent) with an estimated over 15 trillion cubic feet (Tcf), of which 11 Tcf could potentially be the net portion of the Singapore-based company.
“During this first quarter, we have signed an MoU with PGN to collaborate on gas or LNG development and infrastructure for the commercialization of ONWA and OSWA gas,” he said.
