Special Unit of Upstream Oil and Gas (SKK Migas) said the gas project Wasambo can not operate in the near future. Though SKK Migas targets a project that worked Energy Equity Epic Sengkang (EEES) can produce (onstream) in the first quarter of this year. Deputy Operations Control SKK Migas Muliawan this target because there is no commitment from the purchaser that absorb the gas that will be produced from the project. The buyer is PT Perusahaan Listrik Negara (Persero). "The buyers are not ready, an agreement with his foreign policy is not ready," he said last week. However Muliawan not want to specify constraints that led to PLN and EEES as the project contractors have not agreed on GSA.
Because it can not operate in the first quarter of this year, the target was revised. SKK Migas new estimate Wasambo project could transport the gas by the end of this year. (Read: Operation Three Years Ago Oil and Gas Projects Delayed )
Head of Procurement Division of Fuel (BBM) and Gas PLN Chairani Rachmatullah confirmed it still has not got the gas purchase and sale agreement with the project operator Wasambo. PLN still has to consult with the Directorate General of Electricity Ministry of Energy and Mineral Resources (ESDM) related to gas price agreement of EEES.
Chairani said consultation is necessary, given the Ministry of Energy and Mineral Resources Minister has issued Regulation No. 11 of 2017. Under the rules, the government set the selling price of natural gas for electricity generation needs or enterprise power plant (IPP).
"Sellers can use the baseball Wasambo gas prices in candy," he told Katadata, Monday (20/2).Unfortunately, Chairani still keeping what price you want to PLN Wasambo gas from the project.
Article 9 ESDM 11/2017 states or entities PLN power generation can buy gas at the highest price of 11.5 percent of the Indonesian Crude Price (ICP) for one million British thermal units (MMBTU), if it is not located at the mouth of the well. However, if the price exceeds 11.5 percent, PLN can use liquefied natural gas (LNG).
(Read: Teen Could Not Block Oil and Gas Flowing The gas )
LNG for power generation are calculated based on the economic value of the field and using a formula agreed upon price free on board (FOB). This means that buyers bear the cost of transportation and transportation. Under the rules, PLN or electricity generation enterprises can import gas if the price of LNG in the country is greater than 11.5 percent of FOB.
Furthermore, gas from Wasambo project will actually be used by PLN to supply liquefied natural gas storage facilities are small (miniLNG storage) owns in South Sulawesi. This gas will be used for generating electricity that can meet the needs in the area of South Sulawesi. Currently the construction of LNGstoragemini is still under construction by a local company (Perusda) South Sulawesi.
For information, Wasambo project is one of 13 oil and gas projects which are targeted to be operational in 2016 ago. Wasambo expected to produce 37 million cubic feet of gas per day (MMSCFD). (Read: Gas Project Next Month Matindok Will Operate )
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