Publications

Challenges in Monetizing Gas Field in Remote Area

Proceedings Title : Proc. Indon. Petrol. Assoc., 43rd Ann. Conv., 2019

After experiencing years of delay, acceleration to implement the gas monetization plan of Simenggaris Block has been initiated. A plan to utilise the gas for electricity generation through power plant has been put as high priority. The gas operator, Joint Operating Body Pertamina-Medco E&P Simenggaris (JOB P-MEPS, or �the JOB�), is targeting the commercialization to start in 2021, despite acknowledging that in normal circumstances it may need 3-4 years to realize. Nonetheless, the combination of remote locations, scattered location of consumers, small demand and low gas prices at the moment, have put extra weights, thus longer completion time should be expected. The acceleration plan requires the JOB to align and accommodate the interests of different stakeholders, in order to ensure that all influential factors can move at the desired direction, to mitigate any potential risks, and finally to assure the development schedule of the electricity infrastructure which is synchronous with the time frame of the gas monetization. All agency issues, potential problem and bottleneck in the process are mapped through proactive communication and coordination with all stakeholders. Multiorganizational arrangement has been set up through concurrent work and interorganizational collaboration with all relevant institutions to take measures and actions.. As result, significant progress has been successfully achieved, such as shorter processing time to conclude the gas sales agreement, the inclusion of the development plan of the 2x20 MW power plant at the PLN; electricity supply business plan (RUPTL) 2018-2027 along with the distribution network, determination of the power plant and transmission line location by PLN; subsidiary, and finally, the granting of principal approval for the development of main grid and high voltage 150kV electricity transmission by the provincial government. The initiated collaboration has successfully improved the productive capacities of JOB P-MEPS, and at the same time, has helped to reduce uncertainties in the business environments. Those efforts are a real implementation of comprehensive approach to energy management, which can be a valuable example of energy development in Indonesia.

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