ESDM - The Acceleration of Natural Gas Swap from Gajah Baru West Natuna Field

MINISTRY OF ENERGY AND MINERAL RESOURCES
REPUBLIC OF INDONESIA

PRESS RELEASE
NUMBER: 68/HUMAS KESDM/2011
Date: October 26th, 2011

THE ACCELERATION OF NATURAL GAS SWAP FROM
GAJAH BARU WEST NATUNA FIELD

Today, Wednesday, October 26th, 2011, Minister of Energy and Mineral Resources has decided to accelerate the realization of natural gas delivery to Singapore from Gajah Baru Field in West Natuna based on Gas Sale Agreement (GSA) and domestic delivery for 40 million cubic feet per day by using Swap mechanism, which will be utilized for PLN Power Plant in Muara Tawar, West Java.

By the agreement of this gas delivery, the government is spared from the obligation to pay penalty for Rp 5 billion per day, and since the delivery, the State potentially receive about Rp 15 billion per day or Rp 5, 4 trillion per year.

Besides, the natural gas delivery towards PLN West Java for 40 million cubic feet per day is equivalent to 6.000 barrel of fuel (BBM) per day which is able producing electricity 160 – 200 megawatt, so PLN could be able to save operational cost for Rp 2 -3 trillion per year achieved from the difference of BBM purchasing price and natural gas.

Next, the Minister has instructed the Director of Oil and Gas and the Head of BP Migas to immediately take actions and improve coordination with related sides to solve the problem of the Swap.

To optimize the utilization of domestic natural gas, the government will keep on encouraging the development of natural gas infrastructure through pipeline or facility of natural gas receiving terminal in areas that have been programmed in economic growth areas, based on plan stated in MP3EI, or existing industrial center.

The Head of Legal and Public Relations Bureau,

Susyanto

Siaran Pers

The Acceleration of Natural Gas Swap from Gajah Baru West Natuna Field

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