Gas sales-purchase contracts signed

Jakarta (ANTARA News) - The gas sales-purchase contracts which have the potential to contribute Rp7.4 trillion revenues to the state were signed in Jakarta Wednesday.

All of the gas volumes under the sales-purchase contract agreements were designed to meet domestic demand, Chief Spokesman of the Upstream Oil and Gas Regulatory Special Task Force (KKS Migas) Taslim Z Yunus said.

"The gas will be used to meet the need of fertilizer production, electricity and industry. The governments income portion during the sales-purchase period accounts for US$544.66 million or Rp7.4 trillion," he 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.

The gas supply to the fertilizer company will amount to 70 million metric standard cubic feet per day (MMSCFD). It is expected to contribute $470 million or Rp6.392 trillion to the state.

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.

The duration of the contract is two years with a volume of gas supply of 10-16 billion British thermal units per day (BBTUD). It is expected to contribute $68.52 million or Rp931.87 billion to the state.

The other contract is between PT Medco E&P Indonesia and Perusahaan Daerah Petrogas Ogan Ilir for industry in Ogan Ilir District, South Sumara. This contract will be valid until December 31, 2019 with a gas supply volume of 1.3 to 1.6 BBTUD and with a potential state revenue of $6.14 million or Rp83.5 billion.

Data at the SKK Migas office showed that since 2003, gas supplies to the domestic needs increased by about nine percent per annum. In 2003, the volume of gas for domestic supplies had exceeded the gas exports.

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).(*)