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Indonesia to halt LNG exports to Singapore
INDONESIA
INDONESIA has confirmed plans to end lique- fied natural gas (LNG) exports to Singapore once its current supply agreement ends in three years.
The Energy and Mineral Resources Ministry said on February 7 that LNG shipments to Singa- pore would stop in 2023 and that the gas would be diverted to meet domestic demand instead.
The Jakarta Post quoted the head of down- stream regulator BPH Migas, Fanshurullah Asa, as saying that the decision could help reduce the country’s trade balance by displacing some domestic oil demand. The Indonesian govern- ment has already limited state-owned Pertam- ina’s crude import quota for this year, forcing the company to open talks with local oilfield contractors to increase its purchases of domestic crude.
Indonesia’s gas shipments to Singapore are sourced from the Suban field in the ConocoPhil- lips-operated onshore Corridor Block, which delivered 833mn cubic feet (32.59mn cubic metres) per day in the first nine months of 2019, according to data from regulator SKK Migas.
The ministry said that once the supply con- tract with Singapore expires, the gas will be dis- tributed to industrial estates in the Sei Mangkei Special Economic Zone (SEZ) in North Sumatra
via the Dumai-Duri pipeline.
The decision to divert gas supplies away from
the export market was first revealed in Novem- ber, when Energy Minister Arifin Tasrif said in an official statement that there were no plans to renew the contract with Singapore.
Indonesia’s change in priorities comes as domestic demand outpaces available supply. Despite major new projects such as Repsol’s Sakakemang, BP’s Tangguh Train 3 and Chev- ron’s Indonesia Deepwater Development (IDD), all slated to come on stream within the next three to four years, these projects are only expected to delay Indonesia’s eventual emergence as a net LNG importer.
SKK Migas head Amien Sunaryadi told Bloomberg in November that LNG exports were anticipated to drop from 267 cargoes in 2014 to just 200 cargoes in 2019. Sunaryadi said that domestic commitments could rise from 31 cargoes in 2014 to 58 cargoes in 2019.
The regulator estimates that gas supply ear- marked for domestic buyers will climb from 22.7tn cubic feet (642.86bn cubic metres) in 2014 to 23.4 tcf (662.69 bcm) in 2019.
Sunaryadi said LNG export contracts that expired last year would not be extended.
Queensland to launch upstream auction
AUSTRALIA
AUSTRALIA’S Queensland State has unveiled plans to open its next oil and gas exploration bid round in April.
The 12 blocks, which cover 6,804 square km, provide coal-bed methane (CBM), unconven- tional gas and conventional oil and gas explo- ration opportunities, the state government said last week. In addition to the oil and gas acreages, which are located in the Bowen and Surat basins, the government will also release two coal explo- ration licences in the Bowen Basin.
The competitive tender process for the oil and gas blocks will close in June, with the results set to be revealed in September.
The Brisbane government said the gas pro- duced from the blocks would feed both liquefied natural gas (LNG) export projects and the local market as well.
It added: “As part of the Queensland govern- ment’s commitment to unlocking additional gas supply for the domestic market, some tender areas will be released subject to an Australian market supply condition. This condition ensures that any gas produced from those areas is sup- plied exclusively to the domestic market.”
The government said it would evaluate bids based on the tenderer’s proposed exploration work programme and its technical and financial capability to deliver on its proposed work com- mitments. Bidders will also be judged on their history of, and commitment to, compliance with relevant resources, environmental, health, safety, cultural heritage and native title requirements. The government will also take the bidder’s pro- posed community consultation approach into consideration.
The planned auction comes after the govern- ment awarded 3,450 square km of new explora- tion acreage in October. The land was divided into six licences spread across the Bowen and Surat basins.
Praising the latest release of land for explo- ration, Queensland Resources Council (QRC) CEO Ian Macfarlane said: “We have been very supportive of the release of areas for exploration for all resources and the development of gas to service the domestic market. A proactive explo- ration programme secures tomorrow’s resource industry while supporting jobs, many of which will be in regional Queensland.”
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