Friday, 06 December 2019 | 13:29 WIB

Industry Minister: There are Buyers for Masela Block Gas Production

Industry Minister Airlangga Hartarto (Kemenperin)

JAKARTA, NETRALNEWS.COM - Minister of Industry Airlangga Hartarto said gas production in Masela Block, North Maluku begins to be in demand by several industrial sectors. According to him, there are three industries that are interested to use Masela block gas production.

The three industries are fertilizer industry, methanol industry, and industry producing dimethyl ether (DME). Currently, all three are awaiting the point of location of Masela refinery construction before determining their location in building the plant.

"The potential is already there. Fertilizer plant, methanol and dimetyl ether. The gas is from Masela. As for the plant location it depends on location point," said Airlangga at the Ministry of Maritime Affairs Office, Jakarta, Monday (6/12/2017).

So far, the Golkar Party Politician continued, the potential buyers of Masela gas are currently reviewing the gas prices and gas points. Therefore, the Gas Sales and Purchase Agreement (PJBG) will not be signed anytime soon.

"The buyers depend on the price and delivery point and the time. And I mentioned earlier, [it is] to be discussed then we talk about PJBG," he said.

Meanwhile, the Procurement Director of PLN Iwan Supangkat added that his party will build Gas and Steam Power Plant in Masela, to supply power for these industries. It is estimated that the electricity demand for the three industries is around 300 megawatts (MW) and gas is about 60 mmscfd (million standard cubic feet per day).

"[Building the Gas and Steam Power Plant] depends on the industry, 2023 maybe. It depends on when it's finished, [as] it is synchronized. PLN [constructs] but later can work together with IPP [Independent Power Producers]," he said. (*)