Jakarta – The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) noted that gas supply for power plants and the needs of PT Perusahaan Gas Negara Tbk (PGN) is only safe until September 2025, until gas shortages threaten the electricity sector and national gas distribution.
“Gas demand from PLN and PGN has continued to increase since last year. This year, we should be able to fulfil 100 LNG cargoes, up from the 60 cargoes per year contracted previously,” said Kurnia Chairi, Deputy for Finance and Commercialisation at SKK Migas, in a press conference on Monday, 21 July.
The government is now preparing a number of anticipatory strategies, including rearrangement of LNG exports, gas swaps between regions, and accelerated production in several domestic gas blocks, he said.
Kurnia explained that to maintain gas supply security until September, SKK Migas is encouraging production acceleration in active gas fields, filling areas with high gas demand through LNG supply and rescheduling LNG exports abroad.
One of the emergency strategies currently in place is a gas swap from the Natuna and Sumatra regions. According to Kurnia, there is a decrease in gas demand from customers in Singapore by 25-31 million standard cubic feet per day (MMscfd), which is then utilised to meet domestic needs.
This situation indicates that the surge in domestic energy demand has not kept pace with the availability of long-term supply. Moreover, the need for gas for the power generation sector, which is the backbone of national electricity, is vital.
SKK Migas has not yet revealed its supply strategy after September, but stated that it continues to monitor and coordinate with oil and gas producers and related ministries to maintain supply continuity. (Hartatik)
Banner photo: Image generated by OpenAI’s DALL·E via ChatGPT (2024)
