The government announced Tuesday its long-term oil and gas management road map, revealing its ambitious target to attract US$31.2 billion in investment for oil and gas infrastructure between 2010 and 2014.
Of the figure, 69.49 percent or $21.68 billion is targeted for investment in gas facilities, including liquefied natural gas (LNG) and liquefied petroleum gas, LPG refineries, receiving terminals and residential pipeline networks.
The remaining 30.51 percent or $9.52 billion is for oil facilities, including refineries and rigs.
In 2010, the government is targeting $2.94 billion of oil and gas infrastructure investment while in 2011 it is expected to increase this by 7.99 percent to $3.18 billion.
The government is looking at 2013 as the peak year for investment in oil and gas infrastructure during the period. With a target of $ 10.57 billion, this would represent more than double the level of investment in the previous year, at $ 4.32 billion.
The investment target is projected to grow at an average annual rate of 46 percent from 2010 to 2014.
An expert staffer for the energy and mineral resources ministry Kardaya Warnika said the government would focus on expanding gas to reduce dependency on the use of oil.
The development of new gas rigs will continue until 2014 with an average annual investment target of $3.22 billion per year.
“Next year, we will kick off the development of two new gas rigs, namely in Lapangan Rambutan in South Sumatra and in Pondok Tengah in West Java with a total investment of $2.42 billion,” the former Oil and Gas Executive Agency (BP Migas) chairman told a seminar.
The two new gas rigs are expected to produce up to 1,020 million standard cubic feet per day (MMSCFD).
In 2011, the government is planning to build five gas plants, namely Blok A in Nanggroe Aceh Darussalam, Jambi Merang in Jambi, Randublatung in Central Java, Gajah Baru in Natuna off-shore (Riau Islands), and Kepodang in Bawean off-shore (East Java).
The government is planning to build at least 16 new gas rigs by 2014 which can produce up to 20,261 MMSCFD.
To process the gas from the new rigs, the government is also planning to construct gas refineries, both LNG and LPG, with a total investment of $3.65 billion during the 2010-2014 period.
New oil rigs and refineries are expected to be constructed between 2010 and 2014, with an estimated total investment of $ 3 billion and $ 6.52 billion respectively, according to the published road map.
Abdul Qoyum Tjandranegara, an energy observer who was also the former president director of state-owned gas producer PT. PGN, criticized the government oil and gas long-term plan.
“Boosting gas production is good, but it would be a waste if the government exports gas,” he said.
Qoyum said that exporting gas would not be beneficial for the state.
“If we maximize the gas for domestic use, particularly for transportation and domestic use, we will not need to subsidize fuel as much as we do now,” he said.
Qoyum acknowledged that building gas infrastructure would be very expensive. “But it would definitely not exceed the Rp 212 trillion ($ 22.47 billion) that we spent to subsidize fuel in 2008,” he said. (bbs)
Source : The Jakarta Post
Govt eyes 46 percent growth in oil and gas infrastructure
The government announced Tuesday its long-term oil and gas management road map, revealing its ambitious target to attract US$31.2 billion in investment for oil and gas infrastructure between 2010 and 2014.
Of the figure, 69.49 percent or $21.68 billion is targeted for investment in gas facilities, including liquefied natural gas (LNG) and liquefied petroleum gas, LPG refineries, receiving terminals and residential pipeline networks.
The remaining 30.51 percent or $9.52 billion is for oil facilities, including refineries and rigs.
In 2010, the government is targeting $2.94 billion of oil and gas infrastructure investment while in 2011 it is expected to increase this by 7.99 percent to $3.18 billion.
The government is looking at 2013 as the peak year for investment in oil and gas infrastructure during the period. With a target of $ 10.57 billion, this would represent more than double the level of investment in the previous year, at $ 4.32 billion.
The investment target is projected to grow at an average annual rate of 46 percent from 2010 to 2014.
An expert staffer for the energy and mineral resources ministry Kardaya Warnika said the government would focus on expanding gas to reduce dependency on the use of oil.
The development of new gas rigs will continue until 2014 with an average annual investment target of $3.22 billion per year.
“Next year, we will kick off the development of two new gas rigs, namely in Lapangan Rambutan in South Sumatra and in Pondok Tengah in West Java with a total investment of $2.42 billion,” the former Oil and Gas Executive Agency (BP Migas) chairman told a seminar.
The two new gas rigs are expected to produce up to 1,020 million standard cubic feet per day (MMSCFD).
In 2011, the government is planning to build five gas plants, namely Blok A in Nanggroe Aceh Darussalam, Jambi Merang in Jambi, Randublatung in Central Java, Gajah Baru in Natuna off-shore (Riau Islands), and Kepodang in Bawean off-shore (East Java).
The government is planning to build at least 16 new gas rigs by 2014 which can produce up to 20,261 MMSCFD.
To process the gas from the new rigs, the government is also planning to construct gas refineries, both LNG and LPG, with a total investment of $3.65 billion during the 2010-2014 period.
New oil rigs and refineries are expected to be constructed between 2010 and 2014, with an estimated total investment of $ 3 billion and $ 6.52 billion respectively, according to the published road map.
Abdul Qoyum Tjandranegara, an energy observer who was also the former president director of state-owned gas producer PT. PGN, criticized the government oil and gas long-term plan.
“Boosting gas production is good, but it would be a waste if the government exports gas,” he said.
Qoyum said that exporting gas would not be beneficial for the state.
“If we maximize the gas for domestic use, particularly for transportation and domestic use, we will not need to subsidize fuel as much as we do now,” he said.
Qoyum acknowledged that building gas infrastructure would be very expensive. “But it would definitely not exceed the Rp 212 trillion ($ 22.47 billion) that we spent to subsidize fuel in 2008,” he said. (bbs)
Source : The Jakarta Post