Jakarta (ANTARA News) - The gas output from the Jangkrik field in the Muara Bakau Block will be utilized for electricity generation and the fertilizer industry, according to Upstream Oil and Gas Business (SKK Migas) Special Task force.

Head of SKK Migas Amin Sunaryadi stated here on Wednesday that 52 percent of the gas will be delivered to Pertamina, which has already signed a gas sales agreement with the operator of the block, Eni Muara Bakau BV.

"Pertamina has an agreement with PLN (state-own electricity firm). Another 38 percent will be supplied to ENI midstream," Sunaryadi remarked.

Pertamina will ration 1.4 million tons per year and will receive gas supply for seven years, starting 2017.

He added that the remaining 10 percent of the gas output will be delivered to the fertilizer industry in East Kalimantan.

Energy and Mineral Resources Minister Ignatius Jonan pointed out that the Jangkrik Field in the Muara Bakau Block, East Kalimantan, has a capacity to produce 450 million standard cubic feet per day, or equivalent to six to seven percent of Indonesias total natural gas production.

Earlier on Tuesday, the minister had commissioned the Jangkrik floating production unit (FPU) vessel in the Saipem Karimun Yard, Tanjung Balai, Riau Islands.

The FPU is expected to start operations in May and will mark the beginning of gas production in the Muara Bakau Block in mid-year.

"The governments plan will be materialized 12 months earlier," Jonan emphasized.

The FPU will sail to Makassar Straits on Mar 24 and will be positioned at the Jangkrik gas field in Muara Bakau, East Kalimantan, after an expected 12-day journey.

Jangkrik FPU is the largest to be ever designed, built, and assembled in Indonesia and will become operational in May 2017 at the earliest.

Construction of the gas processing facility has been carried using funds worth US$4.2 billion, or $300 million lower than its previous budget of $4.5 billion.

Jangkrik FPU will operate in the Muara Bakau Block located in the Kutei Basin in Makassar Straits, some 70 kilometers off the coast of East Kalimantan.

The FPU will also function as a refinery and to stabilize the condensate as well as to distribute it through a local distribution network to the Senipah condensate refinery.(*)

Editor: Heru Purwanto
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