Indonesia Released 12 Energy Project

Minister of Energy and Mineral Resources (ESDM) Indonesia, Chairul Tanjung, today inaugurated the groundbreaking operation of a total of 12 energy projects. The 12 projects include three oil projects and gas projects and nine power projects. The total value of this investment comparatively very large, reaching USD 10 billion.

Chairul said that the gas and electricity sectors are the two sectors which received much attention from the government. This is because these two sectors have a very large consumption needs and obtain subsidies from government funds that are also large. In the oil sector, consumption reached 1.3 million barrels per day (bpd). This value is much greater than the ability of the national production. The magnitude of this consumption continues to rise every year even. While the trend of oil production is keep declining. Currently, the national oil production is still around 793 thousand bpd.  One project that inaugurated is from the Cepu block. This Block with a peak production of 165 thousand bpd is expected to boost the national oil production to 900 thousand bpd in 2015.

Another project is also inaugurated in the liquefied natural gas (LNG) Donggi Senoro in Banggai, Central Sulawesi. This is the fourth LNG plant in Indonesia and the first downstream scheme. The plant has a production capacity of 2 million tons of LNG per year. The investment value of the project is to reach $ 2.8 billion. Currently the refinery is entering the test phase of equipment for 6 months and will begin sending LNG by mid next year.

Donggi Senoro estimated full production when the supply of feed gas from the upstream (Joint Operating Body Pertamina Medco Tomori Sulawesi -JOB PMTs) and Matindok Gas Development Project (PPGM), has been prepared entirely. JOB PMTs is the largest supplier of gas feed. They will be able to meet the committed gas supply of 250 million cubic feet per day and will begin a full supply in the first half 2015.

Construction of this project has a strategic significance. This project not only aims to support government programs in the conversion of fuel to the fuel gas for the industry. Moreover, this project also embodies an integrated gas infrastructure in Java as the support of the national economy.

Besides oil and gas, another important energy source for the country is electric. Therefore, the Indonesian government has also paid special attention to the power projects. According Chairul, a country must be a state industry to become a developed country. Electricity supply must be an attraction for investors to invest. For that, they need a big power. So there must be a lot of plants are built.

image source: viva.co.id

On this occasion, there are 9 projects Steam Power Plant (Power Plant) with total capacity of 2,093 mega watts (MW) were inaugurated. In addition it also inaugurated Patuha 50 MW geothermal power plant which is the acceleration of building projects of 10,000 MW phase II (fast track program / ​​FTP 2) the first operation. The nine projects are included in the project plant acceleration of building the first phase of a total of 10,000 MW (fast track program / ​​FTP 1) are scattered in various areas. These projects are built to anticipate the growth of electricity demand, increase supply reliability and reduce the use of fuel oil (BBM) which is expensive. Until now, the status of projects FTP 1 which has been operating at 73 percent and the rest will continue to be resolved.