JAKARTA (TheInsiderStories) - A number of oil and gas companies on Wednesday (May 25) signed gas sales contracts with a number of domestic gas buyers including state electricity company PT Perusahaan Listrik Negara (PLN), which have the potentials to contribute Rp7.4 trillion (US4544.66 million) in non-tax revenues to the government.
All of the gas volumes under the sales-purchase contract agreements were designed to meet the domestic demand, the Special Task Force for Upstream Oil and Gas (SKK Migas) said.
Spokesman of SKK Migas Taslim Z Yunus, said one of the contracts is between ConocoPhillips (Grissik) Ltd and state-owned fertilizer company PT Pupuk Sriwidjaja under a three-year term of contract and its expected to contribute Rp6.39 trillion to the state. The gas supply to the fertilizer company will amount to 70 million metric standard cubic feet per day (MMSCFD).
The second contract is between PT Medco E&P Indonesia and PT Meppo-Gen for the Gunung Megang gas-powered electricity plant (PLTG) in Muara Enim District, South Sumatra and estimated to contribute Rp931.87 billion in revenues to the state. The duration of the contract is two years with gas volume of 10-16 billion British thermal units per day (BBTUD).
The third agreement is an amendment of gas sales and purchase agreement (PJBG) between PSC Petroselat with PLN to meet the needs of gas supply for electricity in Riau, amounting to 5 BBTUD for a period of five years.
A heads of agreement (HOA) was also signed by PetroChina International Jabung Ltd and PT Bumi Samudra Perkasa to supply electricity to PLN in Jambi region.
Head of SKK Migas Amien Sunaryadi, said in a press statement that the use of all natural gas that has been contracted in line with the Minister of Energy and Mineral Resources Regulation No. 03 Year 2010 on the allocation and utilization of natural gas for Requirement Fulfillment of the Interior and Electricity Program 35,000 MW.
In realization of this program, the upstream gas sector is expected to contribute as much as 13,400 MW.
SKK Migas is committed to increase the supply of gas to domestic market. Since 2003, domestic gas supply increased by an average of nine percent per year. In 2013, the volume of gas to meet domestic needs was greater than exports.
In 2014 then, the supply of gas to domestic reach 59.8 percent while exports amounted to 40.20 percent. As for this year, domestic gas utilization is expected to rise to 62.7 percent, while exports will drop to 37.3 percent.
Data in 2015 indicated that gas consumed domestically amounted to 3,882 MMSCFD (56 percent) while gas exports stood at 3,090 MMSCFD (44 percent). (*)