Needs For Gas Of Industry Reach 2,130 Million MMSCFD

Jakarta, March 13 (Antara) - Industry needs for natural gas as energy sources and as raw materials reach 2,130 million metric standard cubic feet per day (mmscfd), a senior official of the Ministry of Industry said. "Industry`s needs for natural gas reach 2,130 mmscfd which consist of 1,022 mmscfd for raw materials and 1,108 mmscfd for energy sources," Panggah Susanto, director general for manufacturing industrial base of the Ministry of Industry, said in a seminar on energy here on Wednesday. The director general said that the development of a high competitive and sustainable industry depended on two key factors, namely the readiness of raw materials and energy supply. The two factors will decide the progress of industrial development. He stressed the importance of the readiness of natural gas stock. It served as a raw material and as a source of energy, he added. "The utilization of natural gas as a raw material of industry is in line with the government`s police to boost the development of industries in downstream areas and to increase their added values at home," he said. The industry need for natural gas will continue to increase in line with the development of industry in the future. After all, the development of industry which is considered to be the generator of economic development will continue to be boosted by the government in accordance with its growth target at 7.14 percent this year. Unluckily, industry at home nowadays is still facing shortage of gas supply. Gas supply is still below industrial need and its volume could not yet be met. "The industry is also facing the government`s plan to raise the price of gas in the middle of April 2013. This is a challenge for industry amid the increase in the electricity tariff and labor wages," he added. On the occasion, I Gusti Suarnaya Sidemen, sub-directorate head for oil and natural gas transportation of the Energy and Mineral Resources Ministry, said that his side would continue to make effort in providing gas for industry. "Our focus in the future is on exploring new gas sources, including sources from outside and infrastructure development. We will continue to involve industry and the private sector in supporting infrastructure development," he said. In the meantime, the Upstream Oil and Gas Regulatory Task Force (SKK Migas) has recently announced that the year 2013 is a year of drilling to boost the country`s oil and gas production. The country has recorded shrinking oil production, which has always fallen short of target over the past several years amid fast growing domestic consumption, SSK Migas chief Rudi Rubiandini told oil and gas contractors at a function. The country was once a major member of the Organization of Petroleum Exporting Countries (OPEC), but now it has become a net importer. "This year is a year of drilling," Rudi Rubiandini said. Rudi said geologists have carried out surveys using high and expensive technology, "but it is all for nothing if not continued with drilling." He asked contractors to prioritize drilling this year saying dwindling oil reserves could only be offset through drilling to discover new deposits. SKK Migas continues to push for the greater use of local content for oil and gas production equipment, saying the local content should be at least 60 percent. A new regulation of the energy and mineral resources minister in 2013, has determined a target for the use of local content for upstream oil and gas production facilities in the 2013-2025 period. A deputy at the SSK Migas Gerhard M. Rumeser said for that purpose, a synergy needed to be developed between SSK Migas, the industry ministry, the energy and mineral resources ministry, the Capital Investment Coordinating Board and contractors to prepare and carry out strategic working plans. Producing areas should be involved to utilize their potentials in the procurement of goods needed in oil and gas explorations or production, Gerhard said. "The people in producing areas are entitled to a share of the benefit from their regions," he said. He said SSK Migas pledges to continue to expand cooperation and communications with contractors that goods procurement could be effective and efficient.