Indonesia regulator announces that the delivery of 27 BBTUD gas from West Natuna Supply Group will begin
SKK Migas, Indonesia's upstream oil regulator, said that a gas exchange delivery by West Natuna Supply Group of 27 Billion British Thermal Units per Day (BBTUD), which will help maintain domestic industry supplies, began on Friday.
SKK Migas announced that the gas will be delivered by Medco E&P Grisssk Ltd and PetroChina International Jabung Ltd to the state-owned gas utility company Perusahaan Gas Negara.
In a press release, SKK Migas Chairman Djoko Siswanto stated that the multi-party swap arrangement would ensure that domestic industrial requirements for additional gas supplies are met.
He said that "this step ensures stability in domestic supply, while other contracts continue to be performed."
PGN reported last week that its gas supply in certain areas was declining due to unplanned gas supplier shutdowns.
Gas producers in Western Indonesia produced gas in May
Signing a swap agreement
PGN and Singaporean gas buyers Sembcorp Gas and Gas Supply Pte will help to stabilize the domestic supply. SKK Migas previously stated that it aimed for a swap.
Start in June
MedcoEnergi has said that under the terms of the agreement, Indonesian producer MedcoEnergi will replace the flows from the Corridor Block to Singapore with those coming from the WNSG. (Reporting and editing by John Mair; Bernadette Christopher)
(source: Reuters)
