JAKARTA: PT Perusahaan Gas Negara, or PGN, has been requested to supply 100 million standard cubic feet per day (mmscfd) of gas to PT Chevron Pacific Indonesia, or CPI, the countrys single biggest oil producer. The gas supply is to boost its crude production from Duri field in Riau to 50,000 barrels a day, a senior official at oil and gas regulator BP Migas said on Monday.Gde Pradyana, Head of Public Relations of BP Migas, said that PGN was requested to supply the gas to CPI after state electricity company PLN secured 100 mmscfd of gas supply from PT Energi Mega Persada and Joint Operating Body of PT Pertamina and Talisman Energy Inc. Previously, PGN was to supply the 100 mmscfd of gas to PLN.On one hand CPI has only secured 380 mmscfd of gas supply out of 440 mmscfd it required to produce crude oil, while on the other hand, PLN still requiring a total of 1000 mmscfd of gas for power generating.As PLN can sourced its gas requirement from another companies, PGN can divert the 100 mmscfd of gas supply and enabling CPI to increase its crude production without sacrificing PLNs needs, Pradyana said.He also said that Energi Mega and PLN has signed sales and purchase agreement for 30 mmscfd of gas from Baru, Seng, and Segat fields which will be used for power generating in Pekanbaru, Riau. PLN has also received gas supply contract of 65 mmscfd from Jambi Merang block.On top of that, Energi Mega also operates two blocks, namely Kalila Bentu and Kalila Korinci Baru, estimated to have gas potentials of up to 100 mmscfd. That means PLN still could secure gas supply from Kalila blocks, added Pradyana.Indonesia is one of major natural gas exporters in the world, but struggling to meet domestic demands in recent years as a spike in crude prices prompted industries and power supplier to shift their energy source to cheaper natural gas, while on the other hand export contracts are typically long term and difficult to renegotiate. Previously Vice President Boediono requested the energy and mineral resources ministry to study possibility for oil companies to replace gas with coal so the countrys natural gas could be used to supply other sector such as power generating and fertilizer plant. (T03/NOM)
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