PT Pertamina EP Cepu, a subsidiary of oil and gas giant Pertamina, has revealed that it has to decrease production at the Jambaran Tiung Biru (JTB) gas field in Bojonegoro, East Java. Endro Hartanto, CEO of Pertamina EP Cepu, said the decision to cut production at JTB gas field was due to the limited absorption capacity of several contracted buyers.
“At present, JTB operations can deliver 192 MMscfd. However, the supply has to be reduced due to market limitations,” said Endro during an interview on Tuesday.
Gas production at JTB gas field is currently hovering around 110 million standard cubic feet of gas per day (MMscfd). This figure reflects a significant gap from the production capacity set at 192 MMscfd.
Pertamina had previously secured Gas Sales and Purchase Agreements (GSPA) for the JTB field with State electricity company PT PLN for 100 MMscfd, State-owned gas distributor PT Perusahaan Gas Negara (PGN) for 72 MMscfd, and fertilizer producer PT Petrokimia Gresik (PKG) for a contract ranging from 15 MMscfd to 19.8 MMscfd (swing). The remaining gas volume of about 0.2 MMscfd is directed towards the Lamongan gas network.
Endro emphasized that all gas from JTB has already been contracted or has buyers, and Pertamina is not in a position to offer this gas to new buyers. “Optimizing the absorption of JTB gas requires commitment from PLN, PGN, and PKG which already have gas allocations and have signed GSAs,” he added.
As earlier reported, the Upstream Oil and Gas Regulatory Task Force (SKK Migas) is evaluating alternatives for utilizing the surplus gas supply from oil and gas fields in East Java. Some of the alternatives under consideration include the construction of a mini liquefied natural gas (LNG) plant, compressed natural gas (CNG), and redirection towards liquefied petroleum gas (LPG). “SKK Migas is currently evaluating these options,” said Kurnia Chairi, Deputy for Finance and Commercialization at SKK Migas.
Kurnia also mentioned that the government is promoting the growth of new industries, such as methanol plants, which have the potential to absorb the excess gas supply. According to SKK Migas data as of October 2023, gas lifting from fields in East Java averaged 747 MMscfd. However, the absorption capacity from downstream industries such as PLN, PGN, PPKG, and other consumers is only around 565 MMscfd.
Based on SKK Migas projections, several gas working areas (WK) in East Java are expected to reach peak production between 2024 and 2026. During this period, an oversupply of gas in the East Java region is estimated to reach 200 MMscfd. The supply surplus is identified to come from various prospective fields, including Jimbaran Tiung Biru (around 192 MMscfd), HCML Sampang (around 100 MMscfd), Medco Paus Biru (around 30 MMscfd), PCK2L Bukit Panjang Sampang (around 50 MMscfd), Energi Mineral Langgeng Sumenep (around 30 MMscfd), and MGA Utama Energi Sumenep (around 40 MMscfd and 7,000 barrels of oil per day).
