Jakarta (Indonesia Window) – The State-owned electricity company, PT PLN, and the national company producing fertilizer, PT Pupuk Indonesia, signed a memorandum of understanding (MoU) with a Japanese contractor company, INPEX, in Jakarta on Wednesday (Feb 19) on gas purchase produced from the Masela Block in Maluku province.

The Liquefied Natural Gas (LNG) to be purchased by the two national companies comes from the Abadi Masela Field, according to a press release from the Indonesian Ministry of Energy and Mineral Resources quoted by Indonesia Window here on Thursday.

Minister Arifin Tasrif said the two companies would buy 150 MMSCFD of natural gas for 20 years.

The minister stated that the government supported the signing of the memorandum of understanding as it was in line with the policy on power plant fuel conversion from oil to gas.

"The government is currently converting generators fuel from oil to gas. I strongly support the plan of channeling gas from the Abadi Field to PLN and the national fertilizer industry," Arifin said.

He hoped the MoU could strengthen the certainty of the development of the Abadi Masela Project and Engineering Procurement Construction (EPC) which would begin by 2022.

The MoU was signed by INPEX’s Masela President Director, Ltd. Kenji Kawano, PLN President Director Zulkilfi Zaini, and Pupuk Indonesia President Director Aas Asikin Idat.

Minister of Energy and Mineral Resources Arifin Tasrif, Head of Oil and Gas Task Force Unit Dwi Soetjipto, Japanese Ambassador to Indonesia Masafumi Ishii, and President & CEO of INPEX Corporation Takayuki Ueda witnessed the event.

Development

Minister Arifin emphasized that maintaining energy security was one of the keys in boosting Indonesia's economic development.

Therefore, the government will further expand its energy network through the development of gas pipes and electricity infrastructures throughout the country.

"Energy use for economic development will certainly increase state revenues and create multiple effects for people as it opens up new employment opportunities," Arifin noted.

The MoU was an achievement from the development of the Abadi Masela LNG Project.

The Abadi Masela Field is expected to come onstream in the Second Quarter of 2027 with cumulative production during the contract of 16.38 TSCF (gross).

Reporting by Indonesia Window