Project Tangguh Train 3 Continues to Target

The completion of the Tangguh Train 3 project is believed to be on target, ie 2020. It follows the arrival of a jacket or key infrastructure in the development of Train 3 which became the main milestone for the development of one of the largest liqufied natural gas (LNG) facilities in Indonesia by BP Indonesia. The 1,900-ton infrastructure was sent from Karimun Yard, Riau Islands Province to Bintuni Bay for 18 days.

Vice President of BP Asia Pacific Project Niall Maguire said the jacket sent to Bintuni Bay or the location of the Tangguh Train 3 project is an important milestone in Tangguh's expansion.

"We can build confidence in achieving the next milestone in this project," said Niall.

After the jacket arrives, the next step is to look forward to the arrival of a platform that is indeed a package in the construction of this project. The Tangguh Train 3 project target will be completed by 2020. Later Train 3 will have capacity or production capability reaching 3.8 million tons per annmum (mtpa).

The addition of capacity from Train 3 will make the total LNG processing capacity in Tangguh reach 11.4 mtpa. The project will also add two offshore platforms, 13 new production wells, a new LNG loading dock, and other supporting infrastructure. 

      Gas production from Train 3 will be mostly or approximately 75 percent will be purchased by PT Perusahaan Listrik Negara (PLN) as raw material for gas powered power plants. In addition to PLN, it has also been allocated as much as 20 million cubic feet per day (mmscfd) for the electricity needs of the West Papua Region. BP holds 37.16% of management rights in the Tangguh project.

IN INDONESIA

Proyek Tangguh Train 3 Berlanjut Sesuai Target

Penyelesaian proyek Tangguh Train 3 diyakini masih sesuai target, yakni tahun 2020. Hal itu menyusul tibanya jacket atau infrastruktur utama dalam pengembangan Train 3 yang menjadi milestone utama pengembangan salah satu fasilitas liqufied natural gas (LNG) paling besar di Indonesia oleh BP Indonesia. Infrastruktur seberat 1,900 ton itu dikirim dari Karimun Yard, Provinsi Kepulauan Riau menuju Teluk Bintuni dengan menempuh waktu selama 18 hari.

Vice President Proyek BP Asia Pasifik Niall Maguire mengatakan, jacket yang dikirim menuju teluk Bintuni atau lokasi pengerjaan proyek Tangguh Train 3 merupakan milestone penting dalam ekspansi Tangguh. 

"Kami bisa membangun kepercayaan diri dalam mencapai milestone berikutnya di proyek ini," kata Niall.

Setelah jacket tiba, tahap selanjutnya adalah menantikan kedatangan platform yang memang merupakan satu paket dalam konstruksi proyek ini. Targetnya Proyek Tangguh Train 3 akan selesai tahun 2020. Nantinya Train 3 akan memiliki kapasitas atau kemampuan produksi mencapai 3,8 million tons per annmum (mtpa).

Penambahan kapasitas dari Train 3 akan membuat total seluruh kapasitas pengolahan LNG di Tangguh mencapai 11,4 mtpa. Proyek ini juga akan menambahkan dua anjungan lepas pantai, 13 sumur produksi baru, dermaga pemuatan LNG baru, dan infrastruktur pendukung lain. 

     Produksi gas dari Train 3 nantinya sebagian besar atau sekitar 75% akan dibeli PT Perusahaan Listrik Negara (PLN) sebagai bahan baku pembangkit listrik bertenaga gas. Selain PLN, juga telah dialokasikan sebesar 20 juta kaki kubik per hari (mmscfd) untuk kebutuhan listrik Wilayah Papua Barat. BP memegang 37,16% hak kelola di proyek Tangguh.

Kontan, Page-14, Thursday, June 28, 2018

Performance of Oil and Gas giant is Shiny

The increase in crude oil prices became one of their performance factors during the first 3 months of this year is very shining. The nickname The Seven Sisters taken from Greek mythology appeared in the mid 1940s. At that time, seven oil and gas companies were Anlo-Iranian Oil Company (now BP), Gulf Oil (now part of Chevron), Royal Dutch Shell, Standard Oil Company of Califonia (now Chevron), Standard Oil Company of New Jersey now part of ExxonMobil), and Texaco (merged into Chevron).

The seven companies are the first group dubbed The Seven Sister because it has a big influence on world oil production. Although the nickname has begun to fade with the presence of the Organization of Petroleum Exporting Countries (OPEC), but the perception is still attached to the four major companies, namely ExxonMobil, Chevron, Shell, and BP. 

     On the other hand, upstream oil and gas business was disrupted along with the decline in world oil prices to the level of lows at the level of US $ 25 per barrel in the early period of 2016. However, the dark period for oil and gas companies has begun to end, especially when world oil prices began to rise again during the first 4 months of this year.

As of Monday, West Texas Intermediate (WTI) oil prices rose 11.5% to US $ 67.37 per barrel compared to the end of last year, while Brent oil prices had risen by 10.13% to US $ 73, 65 per barrel compared to the end of 2017. Along with the surge, the performance of the Seven Sisters, except BP, which has not released its first quarter / 2018 financial report, posted a significant net income increase.

Royal Dutch Shell posted the largest net profit and growth. Shell recorded a 68.67% net profit growth in the first quarter of 2018 to US $ 5.7 billion compared to the same period in 2017. Royal Dutch Shell chief executive officer Ben Van Beurden said the first quarter net profit gained strong support from higher oil and gas positions. The ongoing business process through integrated gas business is also one of the contributors to the company's performance.

"Our upstream oil and gas business is still able to increase profits when downstream oil and gas business is less profitable," he said through Shell's official website on Monday (30/4).

Similarly, ExxonMobil, the US-based company, posted net profit growth of 15.96% to US $ 4.65 billion compared with US $ 4.01 billion in the same period last year, ExxonMobil Chief Executive Officer Danen W Woods said , the rise in commodity prices became the main supporter of profit increase during the first 3 months of this year. In addition, ExxonMobil also continues to operate efficiently and strengthen its business portfolio.

"Through new inventions [inventories] and acquisitions, we have also made good progress in plans to improve the production mix, as well as boost sales of premium products in downstream and chemical businesses. On the other hand, Chevron posted net profit growth in the first quarter of 2018 of 5.64% to US $ 3.63 billion compared to the first quarter of 2017.

Chevron Chief Executive Officer Michael Wirth said net profit in the first quarter of this year recorded a significant increase compared to last year. The profit earned by one of the Seven Sister companies is due to a combination of increased production and rising world oil prices.

"We also recorded an increase in cash flow due to support combination of upstream margins and volume levels of production. Our increase in oil and gas production is supported development of shale [oil and shale gas] in the Permian Basin to drive up production there to 65% compared to last year, "he said.

DOWNSTREAM IS DARK

Nevertheless, the three companies are compact record revenue drop in the downstream sector of oil and gas. Shell recorded a 30% drop in oil and gas downstream revenues to US $ 1.8 billion. Then, total downstream net income, ExxonMobil posted a huge decline of 15.77% to US $ 940 million.

Chevron also posted lower downstream oil and gas revenues by 21.38% to US $ 728 million compared to the first quarter of last year. Reforminer Observer Pri Agung Rakhmanto said the income in the downstream sector of The Seven Sisters happened because the income in the previous year was better along with the low oil price. This is inversely proportional to the upstream conditions, after massive efficiency becomes a big advantage when oil prices soar.

"The prospects of downstream oil and gas and upstream oil and gas business may be profitable or not opponent as the movement of dynamic oil prices. The reason, determining investment timing, not oil price developments, "he said.

Well, along with the movement of oil prices that direction continues to climb, does not mean the downstream earnings prospects will continue to fall. If oil prices continue to stabilize, there is an opportunity for upstream and downstream sector of oil and gas to come back positively together in the future.

IN INDONESIA

Kinerja Raksasa Migas Makin Kinclong

Kenaikan harga minyak mentah menjadi salah satu faktor kinerja mereka selama 3 bulan pertama tahun ini sangat bersinar. Julukan The Seven Sisters yang diambil dari  mitologi Yunani ini muncul pada pertengahan 1940-an. Saat itu, tujuh perusahaan migas yang tergabung antara lain Anlo-Iranian Oil Company (sekarang BP), Gulf Oil (sekarang bagian dari Chevron), Royal Dutch Shell, Standard Oil Company of Califonia (sekarang Chevron), Standard Oil Company of New Jersey (sekarang bagian dari ExxonMobil), dan Texaco (dimerger ke dalam Chevron).

Ketujuh perusahaan itu adalah grup pertama yang dijuluki The Seven Sister karena punya pengaruh besar terhadap produksi migas dunia. Kendati julukan itu sudah mulai pudar seiring dengan hadirnya Organization of Petroleum Exporting Countries (OPEC), tetapi persepsi masih melekat kepada empat perusahaan besar itu, yakni ExxonMobil, Chevron, Shell, dan BP. 

     Di sisi lain, bisnis hulu migas sempat terganggu seiring dengan penurunan harga minyak dunia hingga ke level tevendah pada level US$ 25 per barel pada periode awal 2016. Namun, periode gelap bagi perusahaan migas sudah mulai berakhir, terutama ketika harga minyak dunia mulai meningkat kembali sepanjang 4 bulan pertama tahun ini.

Sampai perdagangan Senin (30/4), harga minyak West Texas Intermediate (WTI) naik 11,5% menjadi US$67,37 per barel dibandingkan dengan akhir tahun lalu, sedangkan harga minyak Brent sudah naik sebesar 10,13% menjadi US$73,65 per barel dibandingkan dengan akhir 2017. Seiring dengan lonjakan kenaikan itu, kinerja the Seven Sisters, kecuali BP yang belum merilis laporan keuangan kuartal I/2018, mencatatkan lonjakan pendapatan bersih cukup signifikan.

Royal Dutch Shell mencatatkan laba bersih dan pertumbuhan terbesar. Shell mencatat pertumbuhan laba bersih pada kuartal I/2018 sebesar 68,67% menjadi US$ 5,7 miliar dibandingkan dengan periode yang sama pada 2017. Chief Executive Officer Royal Dutch Shell Ben Van Beurden mengatakan, laba bersih pada kuartal pertama ini mendapatkan dukungan kuat dari posisi harga minyak dan gas yang lebih tinggi. Proses bisnis yang berkelanjutan lewat bisnis gas terintegrasi juga menjadi salah satu penyokong kinerja perusahaan.

“Bisnis hulu migas kami masih mampu meningkatkan keuntungan di saat bisnis hilir minyak dan gas yang kurang menguntungkan ujarnya melalui situs resmi Shell, Senin (30/4).

Begitu juga dengan ExxonMobil, perusahaan yang berasal dari AS itu mencatat pertumbuhan laba bersih sebesar 15,96% menjadi US$4,65 miliar dibandingkan dengan periode yang sama pada tahun lalu senilai US$ 4,01 miliar, Chief Executive Officer ExxonMobil Danen W Woods mengatakan, kenaikan harga komoditas menjadi pendukung utama kenaikan laba sepanjang 3 bulan pertama tahun ini. Selain itu, ExxonMobil juga terus melakukan operasi secara efisien serta memperkuat portofolio bisnis.

“Lewat penemuan-penemuan [cadangan migas] baru maupun akusisi, kami juga telah membuat kemajuan yang baik dalam rencana meningkatkan bauran produksi, serta mendorong penjualan produk premium di bisnis hilir dan kimia ujarnya. Di sisi lain, Chevron mencatatkan pertumbuhan laba bersih sepanjang kuartal I/2018 sebesar 5,64% menjadi US$ 3,63 miliar dibandingkan dengan kuartal I/2017.

Chief Executive Officer Chevron Michael Wirth mengatakan, laba bersih pada kuartal pertama tahun ini mencatatkan kenaikan signifikan dibandingkan dengan tahun lalu. Keuntungan yang didapatkan salah satu perusahaan The Seven Sister itu karena kombinasi kenaikan produksi dan kenaikan harga minyak dunia.

“Kami pun mencatatkan kenaikan arus kas karena dukungan kombinasi margin hulu dan tingkat volume produksinya. Kenaikan produksi migas kami disokong 

pengembangan shale [minyak dan gas serpih] di Permian Basin hingga mendorong kenaikan produksi di sana sampai 65% dibandingkan dengan tahun lalu,” ujarnya.

HILIR SURAM 

Meskipun begitu, ketiga perusahaan itu kompak mencatatkan penurunan pendapatan pada sektor hilir migas. Shell mencatat penurunan pendapatan bersih hilir minyak dan gas sebesar 30% menjadi US$ 1,8 miliar. Lalu, pendapatan bersih hilir secara total, ExxonMobil mencatatkan penurunan sangat besar, yakni 15,77% menjadi US$ 940 juta.

Chevron pun mencatatkan penurunan pendapatan bersih hilir migas sebesar 21,38% menjadi US$ 728 juta dibandingkan dengan kuartal pertama tahun lalu. Pengamat Reforminer Pri Agung Rakhmanto menilai, pendapatan pada sektor hilir The Seven Sisters itu terjadi karena pendapatan pada tahun sebelumnya lebih bagus seiring dengan harga minyak rendah. Hal itu berbanding terbalik dengan kondisi di hulu, setelah melakukan efisiensi besar-besaran menjadi keuntungan besar ketika harga minyak melonjak.

“Prospek bisnis hilir migas maupun hulu migas bisa saja mencatatkan keuntungan atau tidak berlawan seiring pergerakan harga minyak yang dinamis. Pasalnya, timing investasi yang menentukan, bukan perkembangan harga minyak,” ujarnya.

Nah, seiring dengan pergerakan harga minyak yang arahnya terus menanjak, bukan berarti prospek pendapatan hilir bakal terus turun. Bila harga minyak terus stabil, ada peluang sektor hulu dan hilir migas akan kembali positif bersama-sama ke depan.

Bisnis Indonesia, Page-30, Wednesday, May 2, 2018

Finally, BP released the Sanga Sanga oil block

    Finally, BP's shares in the Sanga Sanga Convensional Block in Kutai Kertanegara, East Kalimantan, became the property of PT Saka Energi Indonesia. BP divested all of its shares in the oil and gas block operated by the Virginia Indonesia Company (VICO).

Blogger Agus Purnomo in SAKA Energi

    BP has not denied that the cooperation contract contractor (KKKS) of the Sanga Sanga Conventional Block has been an important part of their business portfolio. But now it is no longer in line with the company's long-term strategy, said BP Indonesia Head of Country Dharmawan Samsu.

BP

    It's just not know the value of the sale of these shares. To be sure, BP's share in the Sanga Sanga Conventional Block is 26.25%.

the Sanga Sanga Conventional Block

    PT Saka Energi Indonesia Operations Director Tumbur Parlindungan was reluctant to share detailed information. Let BP talk about the announcement later, we don't want to go into it.

Blogger Agus Purnomo in SKK Migas

    Deputy Head of the Upstream Oil and Gas Special Task Force (SKK Migas), Zikrullah, admitted that he had not yet received an official report on the sale and purchase of these shares. The Director-General of Oil and Gas at the Ministry of Energy and Mineral Resources I Gusti Nyoman Wiratmaja Puja.

    The sale of shares in the Sanga Sanga Block did not immediately result in BP leaving East Kalimantan. BP still maintains 50% participation in the oil and gas block KKKS in the Coal Bed Methane (CBM) working area, which is located adjacent to the Sanga Sanga Block. 

    Meanwhile, in other locations, BP has other business assets such as Tangguh LNG in Bintuni Bay, West Papua. Indonesia remains a major region for BP, said Dharmawan.

Kontan, Page-14, Wednesday, Nov 23, 2016

Regulatory Reform Needs, Accelerate Oil and Gas Infrastructure

According to an economic observer from Airlangga University, Dr. Nafik HR, the current government must reform its economic policies which are still using a neoliberal paradigm by replacing them with economic policies that are in favor of the people's and national interests and of course constitutional.

Let's just say frankly that the abundant natural wealth so far has been managed by foreign parties, and it is very profitable for them. Therefore, this is what must be taken over to become fully national control.

Then protect the control and development as well as the use of alternative energy such as geothermal, hydropower, solar power, and others that are still very potent. Later it can be managed by state companies such as Pertamina or other national private companies, to help the Indonesian government reduce national imports and in order to increase the production of domestic energy resources and consumption.

Of course, to manage this abundant oil and gas sector and alternative energy, Pertamina needs full support, especially regulations from the government, because so far it turns out that, in terms of managing oil and gas resources, Pertamina is not given the main authority and especially when compared to foreign companies such as Petronas (Malaysia). ), Shell (Netherlands), Chevron (USA), Total (France), ConocoPhillips (USA), ExxonMobil (USA), CNOOC (China), ENI (Italy), KUFPEC (Kuwait), British Petroleum (UK), and so. Just look at how the Regulation of the Minister of Energy and Mineral Resources Number 15 of 2015 is actually very detrimental to Pertamina.

So that whenever this country is declared to exist, the hope that this nation will have energy independence will definitely not be realized. The government's mistakes in the past in managing our natural wealth should be used as a lesson so that in the future it will be returned again for the prosperity of the people.

A legal observer from the University of Muhammadiyah Surabaya (UMS) Umar Sholahudin assessed that regulation is still seen as one of the homework that must be done in national development planning. Umar admits that there are many overlapping, multi-interpreted, disharmony, or inconsistent laws and regulations, all of which actually disturb the investment climate or economic growth, for example, there are regulations governing the same sector but with different mechanisms.

Not a single state institution knows the exact number of laws and regulations issued by the central government and local governments. It means that the government, and the House of Representatives (DPR), are not serious about reforming regulations. The Minister of Energy and Mineral Resources Regulation No. 15/2015 on the management of Oil and Gas working areas whose contract period will expire is very clearly detrimental to Pertamina as a state company.

This ministerial regulation considers Pertamina to be the same as other oil and gas companies when it wants to take over the management of the oil and gas Working Area (WK) which will expire. The full authority of the Ministry of Energy and Mineral Resources to choose/determine which companies will be granted oil and gas management concessions will undermine Pertamina's important role.

In fact, the ministerial regulation has clearly stated that the government does not at all give guarantees to Pertamina to control the concession of the oil and gas working area which will expire, even though there has been a Government Regulation of the Republic of Indonesia Number 35 of 2004 which favors the national interest in terms of controlling national oil and gas resources.

In short, Pertamina must be more empowered, play a dynamic role in obtaining full concessions or the holder of all concessions for all projects at the forefront of the oil and gas and energy sectors so that they have a major impact on Pertamina's progress, and can choose partners if necessary.

In the 2015-2019 National Medium-Term Development Plan (RPJMN) stipulated by Presidential Regulation No. 2 of 2015, energy security is described as to the extent to which energy can be provided in a timely manner and with guaranteed availability, affordable prices, and acceptable quality.

The indicators are the amount of energy, the availability of infrastructure, the price of energy, the quality of energy, as well as the energy portfolio or mix. Energy security also has an element of sustainability so its management must pay attention to the carrying capacity of the environment. According to Dwi Sutjipto, the government is serious about realizing energy independence, as evidenced by the acceleration in the development of energy infrastructure projects.

Various regulations stimulate the development of energy sources at a time when there is a lack of discovery of national oil and gas reserves and fluctuations in world oil prices. The acceleration of energy infrastructure is the main key to creating energy independence now and in the future.

According to Dwi Sutjipto, Pertamina has become the backbone of national energy fulfillment. Not only contributing to the production of energy sources in the form of oil and natural gas which contribute as foreign exchange for the country, Pertamina also has the task of providing and distributing the ever-increasing supply of fuel oil (BBM) and gas.

Pertamina's Vice President of Corporate Communication Wianda Pusponegoro explained as a national oil company (NOC) Pertamina has the responsibility to ensure that energy supply is always in a safe condition for national energy security, under any circumstances. In order for this to be realized, Pertamina has launched 5 strategic priorities, namely, the development of the upstream sector, efficiency in all lines, increasing the capacity of refineries and petrochemicals, developing infrastructure and marketing, and improving the financial structure.

Wianda Puponegoro

According to Wianda, the five strategic priorities are implemented through various innovations. Pertamina's innovations include ensuring that all projects to support energy independence continue. Such as refinery development projects and the construction of new refineries, as well as the development of marketing infrastructure continues according to the established roadmap. International business development is a critical factor for Pertamina to develop into an international class company and to support the realization of national energy security.

Bhirawa, Page-4, Wednesday, Oct 26, 2016

The utilization of Tangguh Gas is still being studied

PT Pupuk Indonesia (Persero) is still reviewing the utilization of gas from the Tangguh Train III refinery which will be used as raw material for fertilizer and petrochemical factories in Bintuni Bay, West Papua.

Tangguh Train III

Head of Communications for the Indonesian Fertilizer Corporation, Wijaya Laksana, said that the plan to build a fertilizer factory in Bintuni Bay is still in the discussion stage. According to him, the current supply of urea-type fertilizer is already in excess so the construction of a new fertilizer factory is not appropriate. 

BP

To utilize gas from the Tangguh Train III refinery in West Papua, which is operated by British Petroleum (BP), the government supports businesses to build a fertilizer and petrochemical factory in Bintuni Bay.

According to him, PT Pupuk Indonesia is still discussing with the Ministry of State-Owned Enterprises (BUMN) and the Ministry of Industry regarding gas-based industrial projects other than fertilizers such as petrochemicals. According to him, the plan to build a gas-based factory will still be carried out. However, his party is still waiting for the results of the study conducted regarding what factory will be built to utilize gas from Tangguh.

He explained that the construction of a fertilizer factory requires an investment of Rp. 8 trillion, as was done at the Kaltim-5 Bontang Factory, East Kalimantan. The factory has a production capacity of 850,000 tons of ammonia and 1.15 million tons of urea per year.

The development of the petrochemical and fertilizer industry in Bintuni Bay will use an area of ​​2,344 hectares. The existence of the industry is expected to get an investment of up to US$ 10 billion. Wijaya said the gas supply for the petrochemical plant in Bintuni Bay can come from any oil and gas field. However, the gas price that can be received by petrochemical plants is around US$ 3 per MMBtu. He said that his party did not know about the plan to exchange gas allocations or swaps from Tangguh Train III to the Kasuri Block.

Blogger Agus Purnomo in SKK Migas

According to him, there has been no formal offer related to the gas swap. Head of Spokesperson for the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Taslim Z. Yunus said the gas swap option was carried out to accelerate gas development from the Kasuri Block operated by Genting Oil Kasuri Pte. Ltd.

The Kasuri Block

The Kasuri Block will start producing gas after three years of the Plan of Development/POD phase I being approved. Vice President Jusuf Kalla asked for efficiency efforts from all lines to realize the decline in industrial gas prices which is expected to take place starting December 2016.

According to him, President Joko Widodo's instructions to conduct a study on the reduction in gas prices within two months must be immediately realized through efficiency on all fronts by related parties. It certainly aims to increase the competitiveness of the national industry with other countries. The way, starting from the efficiency of the production process in the country, the distribution process, to the policy of traders who are advised not to be too many.

The statement was made as a follow-up to the President's instruction to push the price of industrial gas to no more than US$6 per MMBtu. As stated in Presidential Regulation Number 40 of 2016 concerning Natural Gas Price Determination, as many as seven industries are entitled to cheap gas prices, namely fertilizers, petrochemicals, oleochemicals, steel, ceramics, glass, and gloves.

Bisnis Indonesia, Page-30, Tuesday, Oct 25, 2016

SGPP Jawa 1 Receives Gas Supply

    The Ministry of Energy and Mineral Resources offers four sources of gas to supply fuel for the Java 1 Steam Gas Power Plant (SGPP/PLTGU). Since early October, PT PLN (Persero) has asked the government to provide certainty for gas supply. 

BP Berau

    Director General of Oil and Gas, Ministry of Energy, I Gusti Nyoman Wiratmaja, said that the intended gas sources include the Tangguh Refinery in Bintuni Bay, West Papua, which is operated by BP Berau.

ENI Muara Bakau BM. 

    The Bontang refinery in East Kalimantan which is managed by PT Badak NGL, the Bangka Field in the Indonesia Deepwater Development project managed by Chevron Indonesia, and the Muara Bakau Block managed by ENI Muara Bakau BM. 

Chevron Indonesia

    Wiratmaja explained that the Ministry of Energy has not yet issued a decision. This is because the government and contractors have not agreed on the gas price to be given to PLN.

    Head of PLN's Gas and Fuel Oil Division, Chairani Rachmatullah, confirmed that the Ministry of Energy had offered a source of gas. However, so far, there has been no definite commitment. PLN has actually secured a gas commitment from the Tangguh Refinery until 2033.

    The company obtains 1.5 million metric tons of gas per year, and an additional 1.5 million tons will be added if the Tangguh III Refinery operates in 2020. Gas supply increases gradually from 12 cargoes per year from December 2016 to 44 cargoes per year in 2020. 

    Supply gas, will stop in 2033. The state-owned electricity company hopes that there will be gas certainty soon. This is because the auction for the generator developer has entered the final stage. The company stated that the consortium of PT Pertamina (Persero), Marubeni, and Sojitz won first place in the Java 1 PLTGU open auction.

    The Pertamina consortium outperformed its competitors, namely the consortium of PT Adaro Energy Tbk-Sembawang Corporation and the consortium of Mitsubishi-PT Pembangkitan Jawa Bali-PT Rukun Rahardja Tbk. PLTGU Jawa 1 is designed to have a capacity of 1,600 megawatts.

PT PLN (Persero)

    PLN's Procurement Director, Supangkat Iwan Santoso, said that PLN's gas needs reach 250 million standard cubic feet per day (MMSCFD) or around 16 LNG cargoes per year. In the future, Java 1 will become the largest gas generator in the 35 thousand MW program, with project value ranging from US $ 1.6-2 billion. If determined as the winner, Pertamina promised to manage the generator efficiently.

Wianda Pusponegoro

    Pertamina spokesperson, Wianda Pusponegoro, said that the company is partnering with General Electric as a provider of the 9HA steam gas turbine. This technology is claimed to be the latest with a generation electrification ratio exceeding 61 percent, or above the ratio set by PLN. For construction matters, Pertamina invites Samsung C&T.

Koran Tempo, Page-17, Wednesday, Oct 19, 2016