JAKARTA. Ministry of Energy and Mineral Resources (ESDM) has not fully approved the Ministry of Industry’s proposal of the gas allocation of Masela (South Maluku) bloc. As reported by KONTAN on 25 November 2016, Vice Minister of ESDM Arcandra Tahar claimed to have agreed the gas allocation of Masela bloc to three companies, such as PT Pupuk Indonesia, PT Kaltim Methanol Industri (KMI), and Elsoro Multi Pratama, as requested by Ministry of Industry.
According to a document received by KONTAN, those three companies accept the supply of 474 Million Standard Cubic Feet per Day gas supplies from Abadi field, Masela Bloc. According to Director General of Oil and Natural Gas at the Ministry of ESDM IGN Wiratmaja Puja, the allocation of Masela Bloc gas is still being reviewed by the Ministry of ESDM and Inpex Corporation.
“Because, a part of the gas will be used for the upstream purposes, such as petrochemical and fertilizer. We are also still discussing the increase in LNG capacities from only 7.5 MTPA to 9.5 MTPA,” he told KONTAN, (12/12).
However, Wiratmaja is targeting that the decision on the gas allocation will be made at the end of this year. “We are still reviewing the details. It takes time, as we have different stand points,” he said.
In a seperate place, Director General of Chemical, Textile, and Miscellaneous Industries at Ministry of Industry Achmad Sigit Dwiwahjono said that before issuing the recommendation, the ministry had considered the interest of the three companies in investing in fertilizer and petrochemical factories in Maluku.
In addition, the allocation of gas Masela also be determined ahead of time so that not all of the Masela gas converted to LNG for export. "We ask for 50% of gas from the Masela block or around 600 MMSCFD absorbed domestically," he said to KONTAN.
Theo Lekatompessy, President Director of PT Humpuss Intermodal Transport Tbk as a company that has a share in Kaltim Methanol Industry confirmed the request for gas allocation, because they have gas contracts during the 20 years ending in 2018. Only, energy observer Yusri Usman reminded that Inpex has the authority to choose the credible and profitable buyers.
Meanwhile, Senior Manager of Communication and Relations Inpex, Usman Slamet, does not say much about the scheme of the gas allocation. He said that Inpex is still focusing and concentrating on the development of the Abadi field, Masela block.
(Muhammad Farid/Translator)
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