Indonesia to Rely More on Gas Projects for Energy Sources: SKK

Jakarta (Antara) - Expert staff of the head of the upstream oil and gas regulator (SKK Migas) Haposan Napitupulu said Indonesia will rely more on natural gas projects for energy in the future. Haposan said gas projects have the potential to increase the country\'s secondary oil reserves by 1.7 billion barrels and 3.3 billion barrels in tertiary reserve through the mechanism of enhance oil recovery. The Tangguh gas field is predicted to turn out 96,940 barrels of crude oil per day in 2019, he said here on Friday. Oil reserves in gas project will contribute to the country\'s energy security in the future given the country\'s dwindling oil reserves now to 3.7 billion in the oil fields that is predicted to last not more than 11 years to come, he said. Gas production , he said, could also be used by other industries such as to fuel power plants, to feed ammonia and methanol industries and to fuel aluminum plants. He said 700 MMSCFD of natural gas which are worth US$1.5 billion in export market could be processed into methanol and ammonia worth US$5.61 billion. In order to reach a high level of energy security through development of natural gas projects , all stakeholders in the oil and gas sector need to coordinate and think the way a corporation will do , not only focused on commercial target or for financial gain only, he said. \"We must see gas as economic growth driver as a feedstock for petrochemical industry and to reduce imports of oil fuels,\" he said. He said if 50 percent of gas from Tangguh is used to feed petrochemical industry , eastern Indonesia\'s oil fuel, LPG and fertilizer requirements would be fulfilled. Polypropylene industry could be developed that the country does not have to import plastics, he said, adding cement industry could also be expanded to eastern part of the country. What is more important is that development of the industries would provide thousands of jobs, he said. SKK Migas recorded that in 2014, 31.89 percent of total gas production of 6,970 MMSCFD were exported in the form of LNG, 19.2 percent used for domestic industries , 14.73 percent for the electricity sector and 13.67 percent exported through gas pipes and the rest for oiol lifting and LPG.(*)