Masela Still Looking for LNG Buyers

The development of the Masela Block liquefied natural gas or LNG jumbo refinery project in Tanimbar Islands, Maluku Province is still long. Besides being hampered by land issues, Inpex Corporation and Shell Indonesia as the operator have not yet succeeded in finding potential buyers of the liquefied natural gas product. Deputy of Finance and Monetization of SKK Migas, Arief Setiawan Handoko said the process of finding buyers is still long.

So far, there have only been letters of intent (LOL) and memorandums of understanding (MoU) with several parties who have mentioned the purchase volume, some have not, he said.

Previously, Inpex Masela Ltd had conducted an MoU of buying and selling gas from the Masela LNG project with PT PLN (Persero) and PT Pupuk Indonesia (Persero) in February. 

    The memorandum of understanding was intended to start discussions on sales and purchases to supply LNG gas to a gas power plant operated by PLN and natural gas of 150 million standard cubic feet per day (mmscfd) for the co-production refinery to be built by PT Pupuk Indonesia.

But Arief said the MoU had not yet discussed the price scale or product price calculations. Nevertheless, he ensured that SKK Migas continued to record potential buyers, both from the domestic and international markets. 

    SKK Migas is targeting the buyer search process to be completed in 2021. Buyer certainty will also have a positive impact on project sustainability.

In addition to the problem of gas buyers, previously Maluku Governor Murad Ismail has submitted a Governor Decree regarding the determination of the location of the Masela liquefied natural gas refinery port on Nustual Island, Lermatang Village, Tanimbar Selatan District, Tanimbar Islands Regency, Maluku Province, to SKK Migas.

SKK Migas Deputy for Operations Julius Wiratno said the area of ​​the transferred land was still part of the required area.

"Much more is needed to fulfill the LNG refinery development project," he said.

Kontan, Page-12, Wednesday, June 3, 2020

Procurement of the Abadi Port Project Land Begins

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) stated that it has received a Decree (Maluku) Governor of Maluku regarding the determination of the location of land acquisition for the port of the Abadi LNG Project. Next, land acquisition for this port can be done immediately.

The intended letter is Governor's Decree No. 96 of 2020 which establishes the location of the Abadi Project port on Nustual Island, Lermatang Village, South Tanimbar District, Tanimbar Islands Regency, Maluku. The handover was carried out online by Maluku Governor Murad Ismail in Ambon and SKK Migas Head Dwi Soetjipto in Jakarta.

Dwi Soetjipto

According to Dwi, the submission of the decree was a tangible form of support for the completion of the Abadi Project. Prior to this, the Maluku Provincial Government also quickly issued a Governor's recommendation on a Borrowing and Use of Forest Areas Permit for the Abadi LNG Plant to support the project. This shows the coordination between SKK Migas, Inpex Masela Ltd as the operator, and the regional government is going well.

the Abadi LNG Plant

"Furthermore, with this decree, the land acquisition process can proceed to the next stage, namely the implementation stage in accordance with applicable laws and regulations. "This stage will be held by the National Land Agency (BPN) based on a request from SKK Migas," Dwi Soetjipto said.

For this reason, SKK Migas expects support from all stakeholders at the Maluku Province level, Tanimbar Islands Regency, and the local village government so that land acquisition takes place properly.

Governor Murad revealed, his party was given the authority to issue a decree to determine the location of land acquisition for development in the public interest, including oil and gas infrastructure. It supports the development of the Abadi Project which is expected to have a multiplier effect on the economy and other positive impacts on the people of Maluku.

"This decree is one form of our support for SKK Migas and Inpex as operators of the development of the Abadi Gas Field, the Masela Block which is a National Strategic Project so that the gas project in Maluku Province takes place quickly and smoothly," Murad said.

Before the decree was issued, the Land Procurement Preparation Team formed by the Governor of Maluku had carried out the preparatory stage based on Law Number 2 of 2012 concerning Land Procurement for Development in the Public Interest and Presidential Regulation Number 71 of 2012 concerning Implementation of Land Procurement for Development in the Public Interest and regulations the changes.

These activities include notification, preliminary data collection of locations, and public consultation on development plans, site designation, and the announcement of the location of the development. Meanwhile, President Director of Indonesia Inpex Masela Ltd Akihiro Watanabe appreciated the support of the Maluku Provincial Government and SKK Migas so that the port location decree could be submitted.

"This decree is one of the most important points in the process of land acquisition for the construction of the Abadi LNG refinery port," he said.

Investor Daily, Page-10, Tuesday, June 2, 2020

Upstream Oil and Gas Industry Asked to Maintain Activities and Avoid Layoffs

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) requests that the upstream oil and gas industry continue to maintain operations and avoid termination of employment (PHK), in order to maintain the continuity of the industry in the following years, despite being affected by the Covid pandemic. 19 and low world oil prices.

The Head of SKK Migas Dwi Soetjipto said that the achievement of the APBN target in the first quarter was very good, but in the future what was prioritized was how to prevent activities being stopped and no layoffs.

He added, by maintaining upstream oil and gas operations, including in various drilling, maintenance, and other operational programs, the sector was expected to continue to drive the national economy, create a multiplier effect for the regional economy and supporting industries, and maintain the availability of employment.

"Like the blood that continues to flow, the upstream oil and gas industry is expected to continue to drive the pulse of the Indonesian economy," Dwi said.

Meanwhile, SKK Migas Deputy for Operations Julius Wiratno said that until now the commitment of the Cooperation Contract Contractors (KKKS) to achieve the production target is still maintained. From the 1st quarter of 2020 data shows that, for oil production, 7 KKS Contractors exceeded the National Budget target and 8 KKKS exceeded the technical targets in the 2020 Work Plan and Budget. Whereas for gas distribution 5 KKS Contractors were able to exceed the National Budget target and 12 KKS Contractors exceeded the technical target Work Plan and Budget 2020.

SKK Migas has sent a letter of appreciation for KKKS who achieved the target in 2019 and the first quarter of 2020, as well as a warning letter for KKKS that did not reach the target in the first quarter of 2020. In that letter, SKK Migas also submitted input and recommendations for each KKS Contractor based on monitoring the implementation of the Work Plan and Budget and other monitoring so that in the second quarter of 2020 until the end of the year, KKKS who have not yet reached the target can implement the SKK Migas recommendations and those who achieve the target can look for operational ways and innovations so that the achievements obtained can be further improved.

In addition to the operational aspects, SKK Migas through the letter reminded the PSC Contractors to implement the principles of work safety and environmental protection so that the incident rate in the second quarter and until the end of 2020 can be maintained at the specified level.

On Target

Meanwhile, SKK Migas also seeks to prevent the four strategic upstream oil and gas projects from being late in operation despite the Covid-19 pandemic. All projects are targeted to be completed in stages until 2027. SKK Migas Head Dwi Soetjipto said, although the Covid-19 pandemic affected the progress of upstream oil and gas work, the oil and gas contractor working on the four national strategic projects was still committed to completing the project on time.

Jambaran-Tiung Biru Field (JTB)

These four projects are the development of the Train-3 Tangguh Refinery, Jambaran-Tiung Biru Field (JTB), the Masela Block, and the Indonesia Deepwater Development (IDD) Project. One project that is quite constrained by Covid-19 is the development of the Abadi Field, the Masela Block.

Inpex Corporation

"But we are still discussing with Inpex so that onstream (operations) will not retreat from 2027," Dwi Soetjipto said.

Dwi Soetjipto explained the existence of a pandemic hampered the work on the gas project field survey. In order to prevent the spread of Covid-19 from mobility restrictions, a field survey for the Abadi project could not be carried out.

"Maybe there will be a speedup in the coming year," he said.

In addition, a pandemic that suppressed energy demand and global oil prices, Dwi said also made marketing gas that would later be produced from the Abadi Project difficult.

"First of all, what is still constrained is that prospective buyers are still waiting and seeing," he said.

In fact, a commitment to purchase gas is needed so that the Abadi Project can reach the final investment decision / FID stage which is targeted by the end of 2021. So far, Inpex has just obtained a commitment to purchase gas by PT PLN (Persero) 2-3 million tons per year and PT Pupuk Indonesia (Persero) 150 million standard cubic feet per day / mmscfd. At least, around 80% of the 9.5 million tons per year gas production must have a purchase commitment so that FID can be achieved. Constraints due to the Covid-19 pandemic, also experienced by the Train-3 and Jambaran-Tiung Biru Refinery Project.

"But the Train-3 Tangguh Refinery Project will still be on stream (operation) in 2021. Then, JTB is still committed to onstream in 2021," he said.

While the Jambaran-Tiung Biru Project works until the end of March, still referring to SKK Migas data, it still reached 57.91% of the target of 58.17%. So that the project's operating schedule is expected to be slightly delayed from initially the third quarter of 2021 to the fourth quarter of the same year.

The US $ 1.53 billion projects will produce 190 million cubic feet of gas per day / mmscfd. Pertamina EP Cepu President Director Jamsaton Nababan once revealed that the JTB Project was a little late compared to the schedule. However, this delay range is still fairly reasonable and can still be pursued.

It has prepared a number of strategies to pursue this delay. In April-May, he was optimistic that he could return the JTB Project's progress according to plan. The investment value of these four national strategic projects reaches the US $ 37.21 billion. While the additional oil production is 65 thousand BPD and 3,484 mmscfd of gas.

Investor Daily, Page-9, Monday, May 4, 2020

Location of the Masela LNG Refinery Port on Nustual Island

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) stated that the port construction site for the Abadi liquefied natural gas / LNG project, the Masela Block has been established on Nustual Island, Tanimbar Islands.

This port serves to support the construction of the Abadi LNG Plant. In the official statement of SKK Migas, it was stated that the decision was made in Maluku Governor Decree # 96 of 2020 on February 14, 2020. 

Abadi Field natural gas

   The construction of the port at an area of ​​about 27 hectares was to support the development and production of Abadi Field natural gas and the provision of facilities and infrastructure, including facilitating the movement of goods including parts.

Nustual Island

SKK Migas Head Dwi Soetjipto said the location on Nustual Island was only for the port, not including for the LNG plant. However, the location of the refinery will probably not be far from Nustual Island.

Dwi Soetjipto

"This is for the port. "The refinery will be near there, right next to the island next to it," he said.

SKK Migas Business Support Deputy Sulistya Hastuti Wahyu said, after the determination of the location of SKK Migas and Inpex Masela Ltd as the Masela Block operator, will cooperate with the National Land Agency (BPN) for the land acquisition process.

"In this land acquisition process, there will be a process of measurement and payment of compensation, which is led by BPN. It is estimated to take around eight months, "he explained.

In the announcement of the Maluku Regional Secretariat, it was also mentioned that the overall land acquisition stage was estimated to take around eight months. Meanwhile, the construction period for the port of liquefied natural gas refineries is estimated to reach 58 months.

SKK Migas Deputy for Operations Julius Wiratno added, Nustual Island could not be the location of the Abadi LNG Refinery because of its very small size. This island can only be used for jetty or other functions in accordance with the details of the results of the front end engineering design / FEED later.

"For LNG refineries requires a very large land area of ​​almost one thousand hectares, if coupled with a buffer zone can be around 1,400 hectares," he explained.

Inpex Masela Ltd

In addition to land acquisition, currently, Inpex also conducts FEED auctions and makes guidelines for the auction plan for Engineering, Procurement, and Construction / EPC packages. Both will be used as parameters to determine the Final Investment Decision / FID.

According to Julius, FID is targeted to be carried out in the fourth quarter of 2022. If everything goes according to plan, the construction of the Masela LNG Project will be able to begin in the first quarter of 2023. The existence of the Corona Virus spread, he admitted, will have an impact on the ongoing process. However, this can still be anticipated.

"The consequence that appears is a matter of time management that is a little taken up. It takes about one month to clean survey equipment with disinfectants, especially equipment from countries exposed to Covid-19. This survey equipment is very important because it supports direct data for FEED purposes, "explained Julius.

Covid-19

Despite the time constraints, he stressed that SKK Migas remains committed to escorting the project to completion as planned to meet the oil production target of 1 million barrels per day (BPD) by 2030.

SKK Migas targets the Abadi Project to begin production in 2027. The project is projected to produce 9.5 million tons of gas per year in LNG and 150 million cubic feet per day / mmscfd for pipeline gas.

INPEX Corporate Communication Manager Masela Moch N Kurniawan said that his office was aware of them. For this reason, his party appreciates, thanks and supports the decision.

"As operators of the Abadi LNG Project, we will continue to coordinate and communicate with SKK Migas to continue the land acquisition process for the LNG refinery port based on the Governor's decree. So we can realize the stages of the Abadi LNG project in accordance with the POD approved by the Indonesian government, "he said.

Investor Daily, Page-9, Wednesday, March 18, 2020

Progressive Masela LNG Project

The planned development of the Abadi Liquefied natural gas / LNG field Masela Working Area shows progress. Special Work Unit Upstream Oil and Gas Business Activities (SKK Migas) and Inpex Corporation will work closely with the National Land Agency for the land acquisition process.

Inpex Corporation

This followed the stipulation of 27 hectares of Nustual Island (Ha) in the Petuan region of Lematang Village, South Tanimbar, Regency Tanimbar Islands, as the site of the construction of the Masela Blok LNG refinery port. 

the Masela Block

     The Abadi Field is the first Masela Block in the Maluku region which is being developed and operated by Inpex Masela Ltd.

Dwi Soetjipto

SKK Migas Head Dwi Soetjipto said the island chosen between his party together with Inpex Masela and the Maluku regional government namely Nustual Island, which would later be used as infrastructure support for LNG logistics needs. 

     The overall land acquisition stage is estimated to take approximately 8 months, while the implementation time period for developing the LNG refinery port is estimated to be approximately

for 58 months.

"Yes, near Nustual Island," he said.

As for Nustual Island, there is Yamdena Island which has an area of ​​2,981 square kilometers. In addition to Yamdena Island, there is also Selaru Island, which has a relatively smaller area compared to Yamdena, which is 353.87 km square.

Previously, Maluku Governor Murad Ismail issued an announcement regarding the location of the construction of the Abadi Abadi LNG refinery port on Nustual Island on March 13, 2020. Deputy of Operations Julius Wiratno said the land requirement for the construction of the LNG terminal was at least 900 Ha. Coupled with a buffer zone that requires at least 1,000 hectares of land.

"The LNG plant is big, Nustual is a small island. Most meant for supporting ports, "he said.

Julius said if everything goes according to plan, construction of the Masela LNG Project can begin in the First Quarter of 2023.

Bisnis Indonesia, Page-23, Tuesday, March 17, 2020

Maluku Governor Supports the Acceleration of the Abadi LNG Project

Maluku Governor Murad Ismail supports the plan of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) to accelerate the construction of the Abadi LNG Project, Masela Block in 2021. The government encourages the integrated liquefied natural gas (LNG) project to be integrated. it could start operating in 2026, sooner than originally planned in 2027.

the Masela Block

In its official statement, SKK Migas stated that the Maluku Governor's support was conveyed when he met with the Head of SKK Migas Dwi Soetjipto on Sunday (March 8). The meeting discussed a number of strategic plans for the development of the Abadi LNG Project, the Masela Block.

"In the meeting, at the same time, we discussed the acceleration of land acquisition and the readiness of the local workforce, because the planned infrastructure development for the Masela Block has begun in 2021," Maluku Governor Murad Ismail said in an official statement from SKK Migas, Monday (March 9).

He added, his party would not complicate the licensing process and would be involved in land acquisition efforts. Currently, he has also given permission to use forestry land that will be used for the construction of the Abadi Project production facility, the Masela Block, which is in the form of an LNG refinery.

At present, the Provincial Government through the Governor of Maluku has issued recommendations for 900 to 1,000 hectares of land. The land is expected to accommodate the construction of a gas processing facility of 9.5 million tons per year / MTPA.

"The interests of Maluku so that this national strategic project can take place because it will provide a multiplier effect (double impact) for the regional economy, as well as creating jobs. We must be optimistic that the Masela Block Project will have a positive impact on the people and the Maluku region, "Murad stressed.

Dwi Soetjipto

Head of SKK Migas Dwi Soetjipto revealed that the process of land acquisition and licensing is usually an obstacle in investment. However, the support of the Governor of Maluku and the acceleration of the development of the Abadi Masela Project will have a positive impact on the upstream oil and gas industry as a whole. This gives a signal that licensing and land acquisition are no longer an investment problem.

"So what is happening in the Abadi Project is expected to convince investors, especially world-class oil and gas companies to invest in technology and technology in Indonesia. Efforts to realize the production target of 1 million barrels per day (BPD) must be supported by a good investment climate, "he said.

At present, Inpex is still carrying out an environmental impact analysis (EIA) survey for onshore LNG refineries and Floating Production Storage and Offloading (FPSO) facilities. The EIA survey process has been carried out by Inpex since November 2019 and is targeted to be completed within the next year, after going through a survey in the dry and rainy season.

During the construction phase, Inpex must undertake a number of activities, including the construction and operation of underwater gas wells and the construction of the Subsea Umbilicals, Risers and Flowlines (SURF) facilities off the Arafura coast. Furthermore, Inpex also built a production facility, FPSO, underwater gas pipeline from the FPSO to a gas receiving facility (GRF) on land, and an LNG plant on land.

The Abadi project is projected to produce 9.5 million tons of gas per year in LNG and 150 million standard cubic feet per day / mmscfd for pipeline gas. Previously, Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said the Abadi LNG Project was still targeted to operate in 2027.

However, his party encourages this gas project to operate faster in 2026, if it is indeed possible to do so. This is so that the country will immediately receive revenue from this project. To be able to speed up the operating schedule in 2026, Dwi explained that the final investment / FID decision must be completed by the end of 2021. 

     While project construction is targeted to begin in 2021 from the plan in 2022. In addition to working on Amdal, Inpex is holding an auction to carry out front end engineering design work. / FEED and FEED are targeted to be completed by the end of 2021.

Investor Daily, Page-9, Wednesday, March 11, 2020

Accelerated Masela Block Production Target

The government is targeting the Masela Block to start production in 2026 or a year earlier than the original schedule, which is in 2027. The total investment for the Masela Block reaches the US $ 19.8 billion. 

the Masela Block

    Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said steps to accelerate the project so that the impact of the Masela Block's presence could be felt earlier, especially in terms of revenue.

Arifin Tasrif 

"In order to get revenue, if possible in 2026," said Minister Arifin.

The Head of the Special Task Force for Upstream Oil and Gas Activities (SKK Migas) Dwi Soetjipto said the acceleration of the project was allowed after there was certainty about land acquisition. The initial schedule for construction starts in 2022, but we are committed to accelerating. Land acquisition, which has a target of two years, can be targeted for one year, "Dwi said.

Dwi Soetjipto

The land acquisition is targeted to be completed this year, so that next year the construction process can already begin. On the other hand, SKK Migas and the Masela Block operator, Interpex Masela Ltd, also continue to pursue commitments to purchase gas. If gas purchases have reached 80% of the total production capacity, then the final investment decision (FID) process can also begin.

Because if it's already FID, construction can begin. Funding can also be obtained because there are already agreements that have been pursued, "explained Dwi.

According to him, in working on the Masela project, the Dual-Feed scheme will be adopted in which the Engineering Procurement Construction (EPC) and Ont End Engineering Design (FEED) processes are carried out hand in hand. What is clear is that until now the tender process is still ongoing to determine the project implementation contractor.

Nevertheless, Dwi did not want to mention further about this tender. SKK Migas was asked to prioritize lead consortium handled by the Iokal company during dual FEED and EPC for the LNG Plant and Floating Production Storage & Offloading (FPSO) in the Abadi Gas Field project, Masela Block, Timor Sea, Maluku.

The Executive Director of the Association of the Energy and Oil and Gas Supporting Energy Business Association, Kamaluddin Hasyim, admitted that he received the news from SKK Migas asking the lead consortium, not from a local company, but to prioritize international companies.

Kontan, Page-14, Friday, Feb 21, 2020

Masela's New Round

Finally, there began to shed some light on the future of gas from the Abadi Field, Blok Asela, in Maluku. PT Perusahaan Listrik Negara (PT PLN Persero) and PT Pupuk Indonesia (Persero) signed a memorandum of understanding on gas purchases with Inpex Corporation on Wednesday (2/19/2020) night in Jakarta. This is the first step in a long journey on how natural resources in Indonesia should be managed.

The Abadi Field on the Masela Block

The Abadi Field on the Masela Block is another blessing from God for this country. Discovered in 1998, proven reserves of Masela gas 18.5 trillion cubic feet. Planned for production in 2027, the Masela Block will produce 9.5 million tons of liquefied natural gas (LNG) per year and 150 million standard cubic feet per day (MMS CFD) of natural gas.

Even more detailed, the natural wealth is managed with a capital of 19.8 billion US dollars or equivalent to Rp. 267 trillion. The government calculation shows that the total gross revenue from the Masela Block will reach 118.41 billion US dollars or nearly Rp 1,600 trillion during operation. The share of the country will reach 38.9 billion US dollars or Rp 525 trillion. The remainder is the contractor's portion and the recovered operating costs (cost recovery).

the Arun gas field in Lhokseumawe, Aceh

How can you make Masela's fate unlike other natural resource-producing regions in Indonesia? As a comparison, the Arun gas field in Lhokseumawe, Aceh. Starting in production in 1979, Arun gas was exported to Japan and South Korea. Arun was recorded as the largest natural gas producer in the world in 1990 with a production capacity of 1.5 million tons per year.

As it was written in this column on December 7, 2019, the Arun gas well is now dry and has stopped operating since October 2014. So, what is the Arun gas yield? Based on statistical data, the poverty rate in Aceh as of March 2019 was 15.32 percent, far above the national average in the same period of 9.41 percent.

The Human Development Index (HDI) in Aceh in 2018 is 71.19 or slightly below the national HDI of 71.39 Arun should be a lesson for Masela. How abundant natural wealth turned out not to be able to fully improve the lives of its people. That is because natural wealth is seen as a commodity-producing foreign exchange, not the capital for driving domestic development.

The matter of managing natural resources is not a trivial matter. Moreover, Masela is much bigger than Arun. The management is definitely more complicated. The signs have been seen when the polemic decided whether the Masela Block gas should be managed offshore or processed at an onshore refinery several years ago. Finally, the Masela gas was decided to be processed at the mainland refinery.

PT Perusahaan Listrik Negara (PT PLN Persero)

The memorandum of understanding is already in the right direction. Its natural gas is the source of energy for PLN's power plants. While the rest is used to support the fertilizer industry. Indeed, the memorandum of understanding is not final and binding like a gas sale and purchase agreement. At least this is the first step of a long journey ahead.

For PLN, the use of gas from Masela can replace fuel oil for electricity generation. While for the fertilizer industry, gas becomes a vital raw material. Gas from Abadi Field is piped directly to the fertilizer plant. This means that fertilizer plants must be built on land or on the island around sources of gas capable of providing new jobs.

Once again, Arun must be a lesson for Masela. Gas must be a source of energy to empower the economy in the country, not sold to generate foreign exchange. Both the regional and central government must have a long-term vision so that the Masela Block does not suffer the same fate as the Arun Block. 

Kompas, Page-13, Friday, Feb 21, 2020

Sufficient Gas Supply Guaranteed

Gas supply is certain to increase with the operation of a number of gas fields next few years. The government is planning to guarantee that there will be no problems with gas supply for domestic needs. Gas supply is getting stronger following the production of a number of gas fields in the next few years. As for the price, the price reduction option continues to be studied.

Dwi Soetiipto

Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soetiipto said, in 2026 and 2027 there were two gas projects that would produce in large quantities.

the Indonesia Deepwater Development (IDD)

The project is the Indonesia Deepwater Development (IDD) in the Makassar Strait and the Abadi Field of the Masela Block in the open sea of Maluku. IDD is targeted to produce 844 million standard cubic feet per day (MMSCFD) of natural gas, while Abadi Field produces 9.5 million tons of liquefied natural gas per year.

the Masela Block

"Completed overseas sales contracts can be transferred domestically. In addition, there are two upstream projects that will be producing in large quantities, namely IDD and Masela, which will increase supply, "Dwi said after a hearing with the Committee II of the Regional Representative Council, in Jakarta.

The government is also committed to expanding gas supplies for domestic needs. The share of gas for the country is 70 percent while the remaining 36 percent is for exports.

Arifin Tasrif

"Domestic gas demand continues to increase. In the next few years, the possibility for the interior to increase to 70 percent, "said Energy and Mineral Resources (ESDM) Minister Arifin Tasrif.

Throughout 2019, the realization of production is ready to sell (lifting) natural gas 5,934 MMSCFD or still below the state budget target of 7,000 MMSCFD. This year, the government is targeting 6,670 MMSCFD of gas lifting.

Regarding the government's plan to optimize domestic gas uptake, the Deputy Chairman of the Upstream and Petrochemical Industry Committee at the Indonesian Chamber of Commerce and Industry (Kadin) Achmad Widjaja said, if the government really wants to optimize gas, the diesel user industry must switch to gas. Because, 70 percent of the micro, small and medium businesses, small and medium industries to large industries in Java use diesel as the main fuel.

"Need special handling in order to switch to gas. What does the government want? That's the problem, "Achmad said.

The issue of infrastructure which is often used as a reason for hampering optimization of domestic gas, said Achmad, two regasification and floating storage (FSRU) vessels so far have been less than optimal to increase their role.

In addition, the cross-Java pipeline network is less connected to central Java. In addition, the pipeline network in Sumatra, which is mostly owned by SOEs, should be open access (use of shared gas pipes) so that gas prices are more affordable for consumers.

In the study, the Government is still examining various options regarding the reduction in gas prices. The price of gas for the industry is regulated through Presidential Regulation (Perpres) Number 40 of 2016 concerning Determination of Natural Gas Prices.

The regulation states that if gas prices cannot meet the economics of industrial users of natural gas and gas prices are higher than the US $ 6 per million British thermal units (MMBTU), the minister can set certain gas prices.

The stipulation is specifically for natural gas users in the fertilizer, petrochemical, oleochemical, steel, ceramic, glass, and rubber gloves industries. The options prepared by the government are reducing the country's share of upstream prices, requiring gas producers in Indonesia to meet the allocation policy for domestic needs, and freeing the private sector to import gas for industrial zones that are not yet connected to gas infrastructure.

IN INDONESIA

Pasokan Gas Dijamin Cukup

Suplai gas dipastikan bertambah seiring beroperasinya sejumlah lapangan gas beberapa tahun ko depan. Pemerintah mewacanakan menjamin tidak ada masalah pasokan gas untuk kebutuhan di dalam negeri. Pasokan gas semakin kuat menyusul berproduksinya sejumlah lapangan gas dalam beberapa tahun ke depan. Adapun soal harga, opsi penurunan harga terus dikaji.

Kepala Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) Dwi Soetiipto mengatakan, pada 2026 dan 2027 ada dua proyek gas yang akan berproduksi dalam jumlah besar. 

Proyek itu adalah Indonesia Deepwater Development (IDD) di Selat Makassar dan Lapangan Abadi Blok Masela di laut lepas Maluku. IDD ditargetkan menghasilkan gas bumi 844 juta standar kaki kubik per hari (MMSCFD), sedangkan Lapangan Abadi menghasilkan gas alam cair 9,5 juta ton per tahun.

”Kontrak penjualan ke luar negeri yang selesai bisa dialihkan ke dalam negeri. Selain itu, ada dua proyek hulu yang bakal berproduksi dalam jumlah besar, yaitu IDD dan Masela, yang akan menambah pasokan,” kata Dwi seusai rapat dengar pendapat dengan Komite II Dewan Perwakilan Daerah, di Jakarta.

Pemerintah juga berkomitmen memperbesar pasokan gas untuk kebutuhan dalam negeri. Bagian gas untuk dalam negeri menjadi 70 persen sedangkan 36 persen sisanya untuk ekspor.

”Kebutuhan gas dalam negeri terus meningkat. Beberapa tahun mendatang kemungkinan bagian dalam negeri naik jadi 70 persen,” kata Menteri Energi dan Sumber Daya Mineral (ESDM) Arifin Tasrif.

Sepanjang 2019, realisasi produksi siap jual (lifting) gas bumi 5.934 MMSCFD atau masih di bawah target APBN yang 7.000 MMSCFD. Tahun ini, pemerintah menargetkan lifting gas 6.670 MMSCFD. 

Terkait rencana pemerintah mengoptimalkan serapan gas di dalam negeri, Wakil Ketua Komite Industri Hulu dan Petrokimia pada Kamar Dagang dan Industri (Kadin) Indonesia Achmad Widjaja mengatakan, jika pemerintah benar ingin mengoptimalkan gas, industri pengguna solar harus beralih ke gas. Sebab, 70 persen sektor usaha mikro, kecil, dan menengah, industri kecil dan menengah sampai industri besar di Jawa memakai solar sebagai bahan bakar utama.

”Perlu penanganan khusus agar beralih ke gas. Apa pemerintah mau? Itu masalahnya,” kata Achmad.

Soal infrastruktur yang kerap dijadikan alasan terhambatnya optimalisasi gas dalam negeri, kata Achmad, dua unit kapal regasifikasi dan penyimpanan terapung (FSRU) selama ini kurang optimal untuk ditingkat kan perannya. 

Selain itu, jaringan pipa lintas Jawa kurang terhubung di Jawa bagian tengah. Selain itu, jaringan pipa di Sumatera yang sebagian besar dimiliki BUMN seharusnya open access (penggunaan pipa gas bersama) agar harga gas makin terjangkau konsumen. 

Dalam kajian Pemerintah masih mengkaji berbagai pilihan mengenai penurunan harga gas. Harga gas untuk industri diatur melalui Peraturan Presiden (Perpres) Nomor 40 Tahun 2016 tentang Penetapan Harga Gas Bumi. 

Perpres itu menyebutkan, jika harga gas tidak dapat memenuhi keekonomian industri pengguna gas bumi dan harga gas Iebih tinggi dari 6 dollar AS per juta British thermal unit (MMBTU), menteri dapat menetapkan harga gas tertentu.

Penetapan itu khusus untuk pengguna gas bumi bidang industri pupuk, petrokimia, oleokimia, baja, keramik, kaca, dan sarung tangan karet. Opsi yang disiapkan pemerintah adalah mengurangi bagian negara pada harga di hulu, mewajibkan produsen gas di Indonesia memenuhi kebijakan alokasi untuk kebutuhan dalam negeri, dan membebaskan swasta mengimpor gas untuk kawasan industri yang belum tersambung dengan infrastruktur gas.

Kompas, Page-13, Wednesday, Feb 5, 2020