The government will also extend the gas transmission system of Java and Sumatra Island through the Cirebon-Semarang (Cisem) and Dumai-Sei Mangkei pipelines' constructionJakarta (ANTARA) - The Indonesian government will focus on building gas infrastructure in eastern Indonesia given the huge gas potential of the region that can be utilized to support national energy security, a senior official has said.
"In future, eastern Indonesia's gas infrastructure will be highly observed for the use of gas as a substitute for diesel," director general of oil and gas at the Ministry of Energy and Mineral Resources (ESDM), Tutuka Ariaji, said at a webinar, which was accessed from here on Wednesday.
Ariaji revealed that some areas that still utilize diesel engine-based electricity will be shifted to environmentally friendly electricity with the help of liquefied natural gas (LNG).
There are about 53 gas infrastructure projects in eastern Indonesia that encompass mini regasification construction, transmission pipeline construction, storage unit construction, and refinery construction, he pointed out.
The ESDM Ministry has estimated potential national gas reserves at 62.4 trillion cubic feet (TCF), with proven reserves of 43.6 TCF that can be produced over the next 20 years, Ariaji explained.
Eighty-five percent of the total gas potential is located in eastern Indonesia, so infrastructure development is key, he added.
According to Ariaji, the government has formulated two schemes to distribute gas from the eastern region of Indonesia to consumers in the western region.
Related news: Energy holding company to speed up gas infrastructure development: Indonesian official
The first scheme involves converting it to LNG so that it can be carried by ships, he said. However, the scheme will require additional costs that may increase production prices, he argued.
The second scheme involves building a distribution transmission pipeline infrastructure that connects producers to consumers, he said. However, the construction of such transmission pipes will require large investments and consumer certainty, he noted.
"We are executing a distribution logistics scheme in eastern Indonesia with the right transportation," Ariaji said.
"In addition to building infrastructure in the eastern region, The government will also extend the gas transmission system of Java and Sumatra Island through the Cirebon-Semarang (Cisem) and Dumai-Sei Mangkei pipelines' construction," he informed.
The government expects the extension of transmission pipes on both islands to aid industrial growth and boost national economic growth, he added.
Related news: Pertamina to develop gas infrastructure, facilities
Translator: Sugiharto P, Kenzu T
Editor: Suharto
Copyright © ANTARA 2021
