Page 6 - AsianOil Week 38 2021

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SKK Migas calls for greater

gas grid development

POLICY INDONESIA’S upstream regulator said this
week that the country needs greater investment
in natural gas pipelineS if it hopes to unlock the
full potential of its reserves.
SKK Migas secretary Taslim Yunus said on
September 22 that infrastructure problems
were still hampering the growth of domestic
demand.
Domestic gas consumption amounted to
61mn tonnes of oil equivalent (toe) in 2020, or
21.2% of the primary energy mix, Yunus said
during a virtual focus group on national energy
security.
The official noted that while gas’ share would
only inch up to 21.8% of total energy consump-
tion in 2030, in real terms this would mean vol-
umes would climb to 109.1mn toe. With gas
projected to account for 24% of the primary
energy mix in 2050, volumes are expected to
expand to 242.9mn toe.
Yunus said the upstream industry was wres- Meanwhile SKK Migas’ head of the oil and
tling with the challenge of ensuring that new gas gas monetisation division, Agus Budiyanto,
production can be absorbed by the domestic revealed that the country’s gas pipeline infra-
market. structure was not fully integrated.
He said the government had approved a “If you look at the existing pipeline, the only
number of plans of development (PODs) for gas integrated one is from Sumatra to Java,” the offi-
projects – including the Masela Block, Genting cial said, adding that the government’s 2030 pro-
oil as well as several fields in Sumatra – and now duction target meant more needed to be done to
it was imperative to ensure the market could stimulate domestic demand.
absorb the output. The head of Pertamina subsidiary PGN’s
“This is a challenge for all of us how the engineering and technology department,
approved POD can be commercialised, pro- Suseno, said his team was already looking at
duced in the near future,” said Yunus, noting solutions involving greater gas consumption
that while annual demand was growing by 1% with the downstream, power generation, trans-
compared with the economy’s 4-5% rate. The portation, smelting and city gas industries.
official warned that if this did not change it “Those are the focuses that we are working on
would put the government’s 2030 production now; if this is successful, it will certainly encour-
target of 12bn cubic feet (340mn cubic metres) age domestic use to increase significantly,”
per day at risk. Suseno said.v

Carnarvon looks to speed up

Buffalo production timeline

PROJECTS & AUSTRALIAN independent Carnarvon Petro- was still producing oil when it was taken offline
COMPANIES leum is looking to speed up its timeline for first almost 20 years ago. Carnarvon also pointed to
production at the shallow-water Buffalo oilfield the fact that the field’s minimum economic size
redevelopment in the Timor Sea before it has was far smaller than the company’s mid-case
even spudded its first well. recoverable volume estimate of 31mn barrels.
The developer said this week that its con- Carnarvon said on September 22 that it
fidence stemmed from the fact that the field was working with partner Advance Energy on

P6 www. NEWSBASE .com Week 38 24•September•2021