Sengkang gas issues

WORKING VISIT OF WAJO DISTRICT DPRD TO ADPMET SECRETARIAT OFFICE: DISCUSSING GAS PROBLEMS IN WAJO DISTRICT WHICH HAVE NOT BEEN USED

Published On : Jun 27 2023

JAKARTA – The DPRD of Wajo Regency, represented by Mr. Firmansyah, paid a working visit to the Secretariat Office of the Association of Oil and Gas Producing Regions and Renewable Energy (ADPMET). This visit was held on 23 May 2023. The working visit conducted by the Wajo Regency DPRD is a form of Wajo Regency's full support for ADPMET performance.

ADPMET welcomed and expressed its gratitude for the visit of the Wajo Regency DPRD to the ADPMET Secretariat Office where Wajo Regency is part of the member oil and gas producing regions. Through the working visit of the DPRD of Wajo Regency, ADPMET hopes that good communication can be established to find out developments and energy problems in Wajo Regency.

Mr. Firmansyah, as the DPRD of Wajo Regency expressed his curiosity regarding the potential for Renewable Energy in Wajo Regency which could be developed and the gas problem in Wajo Regency which until now the problem has not been resolved.

"Through ADPMET, apart from wanting to know the potential for Renewable Energy that can be developed in Wajo Regency, we want to complain to ADPMET regarding gas problems in Wajo Regency where until now the gas has not been utilized optimally. Energy Equity Epic Sengkang Pty. Ltd (EEES) has not been able to re-produce gas from the Sengkang block and there is no certainty when the gas will be reused to meet the needs of the electricity sector in South Sulawesi, especially Wajo Regency where the Sengkang WK operates. We hope that this gas can be utilized immediately so that our oil and gas DBH in Wajo Regency can increase." Said Firmansyah.

Most of the production of the Sengkang CA is allocated and channeled for electricity in the South Sulawesi region after deducting the supply of gas for household jargas in Wajo Regency. At this time, gas production from the Field cannot be distributed for electricity because there is a disagreement between PLN and the company providing the power plant ( Independent Power Producer / IPP) in this case PT Energy Sengkang.

"The impact of not channeling gas production at the Sengkang CA not only results in potential gas production being restrained, but also that the state no longer receives revenue from the sale of gas. More than that, our DBH has also not increased," said Firmansyah

In this case, the Secretary General of ADPMET, Andang Bachtiar, also responded to the gas problems in Wajo Regency. "Government policies that favor the electricity sector with low gas prices should be used as well as possible to support the provision of relatively clean energy in order to improve the Indonesian economy, especially for oil and gas producing regions in the energy transition era." Andang said

Andang Bachtiar said ADPMET is currently actively taking promotional steps, supporting investors to make investments to take-over or buy gas that has not been absorbed by the main buyers because they can only buy at the lower volume according to the GSA (Gas Sales Agreement). "In terms of gas problems in Wajo Regency, efforts will be made to monetize stranded or marginal gases using a portable and cluster technology approach . Hopefully it can be realized soon to cover or also include gas in Wajo Regency into it." Said Andang Bachtiar.

Several ADPMET efforts in order to optimize Gas absorption and utilization, both from active fields and stranded gas fields, also including Carbon Capture Storage (CCS) activities will be presented and discussed at the 2023 ADPMET National Working Meeting in Yogyakarta on 4 to 6 July 2023