| By Andi Abdussalam |
Jakarta, Sept 14 (Antara) - The Indonesian government, through the Ministry of Energy and Mineral Resources (ESDM), is expected to cooperate with Singapore to develop infrastructure facilities to supply liquefied natural gas (LNG).
The cooperation to build gas infrastructure, which will be used to supply LNG to power plants in remote areas of Indonesia, is a deal to develop facilities and to not import gas from Singapore as had been wrongly reported recently.According to Coordinating Minister for the Ministry of Maritime Affairs Luhut Binsar Pandjaitan, the gas will be channeled through facilities that can be moved to destination locations with a floating terminal, which is equipped to accommodate LNG and convert it into gas, also termed as regasification, or commonly called Floating Storage and Regasification Unit. Pandjaitan noted that Singapore has offered to develop the LNG infrastructure facility for supplying gas to power plants in remote areas around Sumatra and Gorontalo in Sulawesi. "They will have investments there, as they have built it," he added. The supply capacity of the facilities to be built under the cooperation is estimated to reach 500 megawatts (MW), as it is reserved for remote areas. "In total, it will be almost 500 MW. However, it will be supplied in small volumes for the islands. They can be 25 MW, 50 MW, and 100 MW in Gorontalo," he remarked. |
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Kamis, 14 September 2017
INDONESIA, SINGAPORE TO DEVELOP GAS INFRASTRUCTURE
Sabtu, 24 September 2011
RI LIKELY TO CUT GAS EXPORTS TO SINGAPORE
| by Andi Abdussalam |
Jakarta, Sept 24 (ANTARA) - Indonesia is likely to cut its gas exports to Singapore due to increasing demand for the commodity at home, but a minister warns that totally stopping the exports could bring on a legal problem. So far, Singapore is importing about 700 million metric standard cubic feet per day (mmscfpd) of gas from Indonesia under a contract that will expire in 2020. On the other hand, due to increasing demand at home, Indonesia is also importing the commodity to cover a consumption deficit. Indonesia's gas consumption in 2005 for example was recorded at 3,541 mmscfd and it rose to 4,233 mmscfd in 2009. Thus, Indonesia is considering reducing its gas exports to Singapore amid difficulties to meet its own domestic need for the fuel. A team to renegotiate Indonesia's gas export contract with Singapore had already started working. "I have asked the team to accomplish a halt to additional gas exports to Singapore," Chief Economic Minister Hatta Rajasa told a working meeting with House Commission VII on energy affairs. He said gas exports to Singapore had been too voluminous while there was a shortage in supply for domestic needs. Yet, Industry Minister MS Hidayat warned that Indonesia should not stop it all at once because it could result in a legal problem. "I have heard that gas exports to Singapore will be stopped to meet the need for gas at home. I don't think it should be totally stopped all at once," Hidayat said. If the Indonesian step caused business damage to the Singapore side then the island state based on the Anglo Saxon law could file a complaint and sue Indonesia for defaulting on the contract. She said she had asked Singapore to lend some of the gas to which it was contractually entitled to Indonesia for some time. "We are studying the possibility of reducing or temporarily borrowing gas based on the existing contract with Singapore," she said. Evita Legowo said her office had coordinated with the ministry of foreign affairs to re-negotiate the contract with Singapore. "Though it is difficult, yet we have to find a way," she said. The House of Representatives (DPR) had earlier asked the government to divert some of the gas destined for export to Singapore to state-owned electricity company PLN to meet the utility's need for the fuel. Totok Daryanto, said although it would be difficult, he was convinced the government could do it. He made the remarks after a closed-door meeting with the director general of electricity who represented the Minister for Energy and Mineral Resources (ESDM) "The House supports the diversion of the gas to PLN," he said. He said that of ConocoPhilips' gas production of 700 billion British thermal unit (bbutd), some 400-500 bbtud were exported to Singapore, while at the same time, PLN needed a large quantity of gas. Totok said it would be difficult for the government to re-negotiate the contract with Singapore because the position of Indonesia in the contract was weak. State gas distributor PT Perusahaan Gas Negara (PGN) estimated that the gas deficit would reach 385 billion British thermal units per day [BBTUD] in 2010, according to a report by the Jakarta Post last year, and will continue to increase until reaching 713 bbtud in 2015. In the meantime, Minister Hatta Rajasa denied he had permitted additional gas exports to Singapore at the expense of state-owned electricity company PT PLN. "It is not true that a limited coordination meeting of the office of the coordinating minister for the economy has decided to supply 100 bbtud to Singapore," he said. Evita Legowo, confirmed Hatta's statement saying "there was no decision to allow additional gas exports to Singapore. What was agreed on was additional gas supply to increase Chevron's production (PT Chevron Pacific Indonesia)." The decision, according to PT PGN, was made due to a drop in gas supply from gas producer ConocoPhillips to PGN after the government decided to shift it to Chevron to increase oil production and gas exports to Singapore. PLN needs an extra gas supply of 600 billion British thermal unit per day to meet its gas needs of 900 bbtud. "We have 300 BBTUD now. We need another 600 bbtud," PLN President Director Dahlan Iskan said. Therefore, PLN is looking into the possibility of gas supplies from Australia, Papua New Guinea and Qatar to meet its gas needs. "We will select which of them will offer the best price," Dahlan Iskan said. Domestic industries had so far been relying on gas from sources or suppliers in the country. But until the end of 2011 state gas company PT PGN could only meet around 583 mmscfd of an existing demand for 863 mmscfd. According to Industry Minister Hidayat, Indonesia will import gas from the Middle East to meet increasing demand following strong growth of national industries. "National industries keep on growing so we need to anticipate a possible shortage of gas. The gas import is urgently needed because domestic supply is meeting only 60 percent of domestic need," Hidayat said.***5*** |
Rabu, 15 April 2009
INDONESIA LOOKING FOR NEW LNG BUYERS
By Andi Abdussalam
Jakarta, March 16 (ANTARA) - The government will seek alternative buyers for the country's liquefied natural gas (LNG), or convert unsold LNG into liquefied petroleum gas (LPG), if traditional importers overseas reduce their LNG intakes from Indonesia.
As LNG importers abroad are predicted to reduce their purchases from Indonesia, the government needs to find alternative buyers or convert some of its LNG production in an effort to avoid full capacity, tank-top production.
"Stocks have not yet reached the tank-top level but at least we already have the first warning. If it is left unheeded it could reach that level which will force us to stop LNG well operations. If this happens it will pose a problem because it is very difficult to reactivate the wells," Energy and Mineral Resources Minister Purnomo Yusgiantoro said here on Monday.
Previously, the head of the Upstream Oil and Gas Regulating Body (BP Migas), R Priyono, expressed worry that LNG importers in Japan, South Korea and Taiwan would reduce their purchases from Indonesia due to the current global financial crisis.
The three countries are reportedly intending to cut their LNG imports from Indonesia by about 15 shipments or about 45 million million British thermal units (mmbtu).
A cut of LNG imports of that volume from Indonesia's Bontang refinery plants in East Kalimantan, would reduce state revenues. Besides it would also cause the refinery's production to reach its tank-top capacity level.
However, Energy and Mineral Resources Minister Yusgiantoro said at present Indonesia's LNG production had not yet reached the tank-top level. But he had asked state-owned oil and gas firm Pertamina and BP Migas to seek alternative buyers.
Japanese importers which are usually called Western Buyers have indicated they would cut their LNG imports from Indonesia by three to six shipments, while Korea Gas had also signaled it would reduce its imports by six shipments. In addition, the Chinese Petroleum Corporation of Taiwan is reportedly also planning to slash its LNG imports by three shipments.
One shipment of LNG is equal to three million million British thermal units (mmbtu). Thus, the combined potential cuts in the LNG imports of those countries from Indonesia would be about 15 shipments or about 45 million mbtu.
Actually early last month, Pertamina, Total E&P Indonesie and Inpex Corporation extended their contracts on sales of LNG from Bontang to six Japanese companies.
The extended contracts in the form of a Head of Agreement (HoA) were signed in Osaka, Japan, at the end of January 2009.
The six Japanese companies are Chubu EPC, Kansai EPC, Kyushu EPC, Nippon Steel Co Ltd, Osaka Gas Co Ltd and Toho Gas Co Ltd.
According to Priyono, the renewed contracts would expire after 10 years or between 2011 and 2020. The volume of LNG stipulated in the contracts reached 25 million tons, consisting of three million tons that should be shipped per annum for the first five years.
Of the three million tons, two million will be shipped under cost, insurance and freight(CIF) terms and one million tons under free on board (FOB) terms.
In the second five years, the LNG shipments would be carried out with two million tons per annum. One million tons will be shipped under the CIF condition and one million others under the FOB term.
Yet, with the indication of importers to cut their LNG imports from Indonesia, the government has to seek alternative buyers or convert some of its LNG into LPG production.
Yusgiantoro said so far no LNG importers from the three countries had officially notified its intention to reduce its imports from Indonesia.
"But the importers have indicated that they will reduce their LNG imports as a result of the declining performance of their industries due to the global economic crisis," the minister said.
BP Migas Head R Priyono said if the importers did cut their imports from Indonesia, the government would do its best to find new LNG buyers and convert the gas commodity to LPG in order to meet the need for gas of domestic fertilizer companies.
"We already have the experience to convert LNG to LPG. We have the experience in the past to switch LNG to LPG using a converter," he said.
In the meantime, Pertamina expects to obtain 5 to 6 additional LPG shipments from the Bontang LNG plant in East Kalimantan for its kerosene-to-gas conversion program.
Pertamina's deputy director for commercial and marketing affairs, Hanung Budya, said recently his company had held negotiations with PT Badak LNG to get additional gas supplies because the latter had an LPG production surplus.
The LPG, which was produced out of the conversion of natural gas in the Bontang field, is equal to 300 metric tons, or about 40 metric tons per shipment. If agreed, the additional LPG supplies would begin to be shipped in May and continue until the end of this year.
With the additional supplies, the national need for 2.5 million tons of LPG in 2009 could be met. "This is in addition to the supply of gas under a contract with Petredec which supplies 800,000 to 1 million metric tons per annum," he said.
Pertamina's Commercial and Marketing Director Achmad Faisal said meanwhile, the company would continue to seek LPG suppliers beside Petredec.
"We don't want to depend on one supplier only. We need a second supplier so that supply would be guaranteed," Faisal said.***2*** (T.A014/A/HAJM/16:25/a014) (T.A014/A/A014/A/A014) 16-03-2009 17:20:54
Jakarta, March 16 (ANTARA) - The government will seek alternative buyers for the country's liquefied natural gas (LNG), or convert unsold LNG into liquefied petroleum gas (LPG), if traditional importers overseas reduce their LNG intakes from Indonesia.
As LNG importers abroad are predicted to reduce their purchases from Indonesia, the government needs to find alternative buyers or convert some of its LNG production in an effort to avoid full capacity, tank-top production.
"Stocks have not yet reached the tank-top level but at least we already have the first warning. If it is left unheeded it could reach that level which will force us to stop LNG well operations. If this happens it will pose a problem because it is very difficult to reactivate the wells," Energy and Mineral Resources Minister Purnomo Yusgiantoro said here on Monday.
Previously, the head of the Upstream Oil and Gas Regulating Body (BP Migas), R Priyono, expressed worry that LNG importers in Japan, South Korea and Taiwan would reduce their purchases from Indonesia due to the current global financial crisis.
The three countries are reportedly intending to cut their LNG imports from Indonesia by about 15 shipments or about 45 million million British thermal units (mmbtu).
A cut of LNG imports of that volume from Indonesia's Bontang refinery plants in East Kalimantan, would reduce state revenues. Besides it would also cause the refinery's production to reach its tank-top capacity level.
However, Energy and Mineral Resources Minister Yusgiantoro said at present Indonesia's LNG production had not yet reached the tank-top level. But he had asked state-owned oil and gas firm Pertamina and BP Migas to seek alternative buyers.
Japanese importers which are usually called Western Buyers have indicated they would cut their LNG imports from Indonesia by three to six shipments, while Korea Gas had also signaled it would reduce its imports by six shipments. In addition, the Chinese Petroleum Corporation of Taiwan is reportedly also planning to slash its LNG imports by three shipments.
One shipment of LNG is equal to three million million British thermal units (mmbtu). Thus, the combined potential cuts in the LNG imports of those countries from Indonesia would be about 15 shipments or about 45 million mbtu.
Actually early last month, Pertamina, Total E&P Indonesie and Inpex Corporation extended their contracts on sales of LNG from Bontang to six Japanese companies.
The extended contracts in the form of a Head of Agreement (HoA) were signed in Osaka, Japan, at the end of January 2009.
The six Japanese companies are Chubu EPC, Kansai EPC, Kyushu EPC, Nippon Steel Co Ltd, Osaka Gas Co Ltd and Toho Gas Co Ltd.
According to Priyono, the renewed contracts would expire after 10 years or between 2011 and 2020. The volume of LNG stipulated in the contracts reached 25 million tons, consisting of three million tons that should be shipped per annum for the first five years.
Of the three million tons, two million will be shipped under cost, insurance and freight(CIF) terms and one million tons under free on board (FOB) terms.
In the second five years, the LNG shipments would be carried out with two million tons per annum. One million tons will be shipped under the CIF condition and one million others under the FOB term.
Yet, with the indication of importers to cut their LNG imports from Indonesia, the government has to seek alternative buyers or convert some of its LNG into LPG production.
Yusgiantoro said so far no LNG importers from the three countries had officially notified its intention to reduce its imports from Indonesia.
"But the importers have indicated that they will reduce their LNG imports as a result of the declining performance of their industries due to the global economic crisis," the minister said.
BP Migas Head R Priyono said if the importers did cut their imports from Indonesia, the government would do its best to find new LNG buyers and convert the gas commodity to LPG in order to meet the need for gas of domestic fertilizer companies.
"We already have the experience to convert LNG to LPG. We have the experience in the past to switch LNG to LPG using a converter," he said.
In the meantime, Pertamina expects to obtain 5 to 6 additional LPG shipments from the Bontang LNG plant in East Kalimantan for its kerosene-to-gas conversion program.
Pertamina's deputy director for commercial and marketing affairs, Hanung Budya, said recently his company had held negotiations with PT Badak LNG to get additional gas supplies because the latter had an LPG production surplus.
The LPG, which was produced out of the conversion of natural gas in the Bontang field, is equal to 300 metric tons, or about 40 metric tons per shipment. If agreed, the additional LPG supplies would begin to be shipped in May and continue until the end of this year.
With the additional supplies, the national need for 2.5 million tons of LPG in 2009 could be met. "This is in addition to the supply of gas under a contract with Petredec which supplies 800,000 to 1 million metric tons per annum," he said.
Pertamina's Commercial and Marketing Director Achmad Faisal said meanwhile, the company would continue to seek LPG suppliers beside Petredec.
"We don't want to depend on one supplier only. We need a second supplier so that supply would be guaranteed," Faisal said.***2*** (T.A014/A/HAJM/16:25/a014) (T.A014/A/A014/A/A014) 16-03-2009 17:20:54
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