Bisnis, JAKARTA — The decrease in natural gas production across several oil and gas fields has resulted in a reduction in the supply of piped gas distributed by PT Perusahaan Gas Negara Tbk. to industrial users in western Indonesia, including central Sumatra, southern Sumatra, and western Java, where industrial operations are hindered.
While eastern Indonesia boasts an abundance of gas supply, including uncommitted liquefied natural gas (LNG) cargo from the Tangguh LNG Plant in West Papua and the Bontang Refinery in East Kalimantan, the region faces challenges in effectively distributing this surplus. Limited gas pipeline infrastructure prevents the transfer of gas from areas with excess supply to regions experiencing deficits.
To address this challenge, the Ministry of Energy and Mineral Resources (ESDM) has opted to redistribute the abundant gas resources from eastern Indonesia to fulfill demand in the western regions. However, this redistribution involves supplying gas to customers in the form of LNG, necessitating a more extensive distribution process compared to piped gas. This process includes additional steps such as cooling, transportation, storage, and regasification.
SKK Migas Head of the Program and Communications Division Hudi Suryodipuro disclosed that the upstream oil and gas authority has arranged for two additional LNG cargoes for PGN (PGAS). These cargoes originate from the Tangguh LNG Plant in Teluk Bintuni, West Papua.
