Gas supply for the fertilizer industry is predicted to increase in 2023 as the national economy recovers. The demand from several fertilizer producers in 2022 has been fulfilled.
Heaptalk, Jakarta — Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) is optimistic that the gas supply for the fertilizer industry can be fulfilled to anticipate increased demand in 2023 as the national economy recovers. Based on the organization’s calculations, the Deputy for Finance and Commercialization of SKK Migas Kurnia Chairi said that gas demand for the fertilizer industry in 2023 can be met.
Kurnia also detailed supplies for several fertilizer producers whose have been fulfilled in 2022, including Pusri Palembang, with the gas demand of 190 MMSCFD supplied by KKKS Medco E&P Corridor, Pertamina EP, Medco E&P South Sumatra, Lematang, and Tropik Pandan.
Pupuk Kujang Cikampek with the needs of 101 MMSCFD is supplied by Pertamina EP West Java, PHE ONWJ, and Pertamina EP South Sumatra through PGN. Meanwhile, Petrokimia Gresik’s demand of 141 MMSCFD is fulfilled by HCML MDA – MBH, MAC and BD fields, Pertamina EP Cepu, and Kangean Energi.
Further, Pupuk Kalimantan Timur with a demand of 335 MMSCFD is supplied by Eni Muara Bakau, Eni East Sepinggan, PHKT, PHSS, and PHM as well as Chevron Rapak, and Makassar Strait. Pupuk Iskandar Muda’s (PIM) factory 2 with the needs of 50 MMSCFD is supplied by Medco E&P Malacca, PHE NSO, and PEMA Global Energi. Meanwhile, the newly reactivated PIM-1 factory has also met its gas needs until December 2022.
Prioritizing domestic gas supply
For the needs of 2023, initially, PIM planned to supply gas through imports, but the current high international prices could not make the project cost-effective. Based on Indonesia’s gas balance in 2023, the need for a PIM-1 gas supply volume of around 55 MMSCFD can be fulfilled from the potential uncommitted cargo in 2023 of 9 cargoes, which can be used, among other things, to meet PIM-1’s gas needs of around 5 cargoes.
The amount of uncommitted cargo does not include the additional gas supply from Tangguh Train 3 which will carry out the decommissioning process early next year. Fulfillment of this gas needs will depend on price and also the schedule, which will be discussed soon after PIM’s management officially submits the needs to SKK Migas.
To support the government’s policy on prioritizing domestic needs, SKK Migas and KKKS increase the allocation of domestic gas supply. Domestic gas distribution has achieved 64% in 2021 and currently reach 69% in 2022.
“As a form of support for the Government’s policy to meet domestic gas needs, we ensure that domestic gas supply in 2023 will be fulfilled and prioritized. Based on SKK Migas calculations, the ability to supply gas for 2023 will be higher than in 2022, considering that currently the national strategic project (PSN) for the upstream oil and gas Jambaran Tiung Biru operated by Pertamina Cepu in Bojonegoro and the MBA-MDH project operated by HCML in Madura,” said Kurnia in Jakarta (12/09).
