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Indonesia govt generates $111.08M from 7 gas sales deal

JAKARTA ( – The three-days Indonesian Petroleum Association (IPA) officially closed on Friday (May 4). The closing ceremony was marked by the signing of seven gas sales and purchase agreements (PJBG) between producers and buyers, that allows the government to generate US$111.08 million or around Rp1.49 trillion in revenues.

The gas sales contracts will last for seven years with combined gas volume of 65.41 trillion British thermal units (TBTU). “In line with the commitment of the upstream oil and gas industry to support the national energy supply, all gas deliveries in the PJBG are aimed to meet domestic gas needs,” the head of the Special Task Force for Upstream Oil and Gas Amien Sunaryadi said. 

The gas will be delivered to meet the needs of fertilizer companies, oil lifting, refineries, electricity, city gas network and industries. On average, the gas supply to domestic market has increased by 7.37% in the last 14 years. As of February, 2018, the gas supply to domestic market reached 3,860 billion British thermal unit per day (BBTUD) or 58% of national gas production, while 2,738 BBTUD (42%) is exported.

Amien said domestic energy needs, both gas and oil, are projected to continue to increase. Therefore, Indonesia needs massive oil and gas explorations both onshore and offshore in order to increase possibility of discoveries. “We all have to support massive oil and gas explorations,” he said.

Followings are the gas sales and purchase agreements:

No Seller Buyer Volume Contract Period
1 Kangean Energy Indonesia Ltd PT Petrokimia Gresik 7.5-8.5 BBTUD 2 years (2018-2019)
2 PT Tropik Energi Pandan


PT Pupuk Sriwijaya Palembang 10 BBTUD. 10 years (2019- 2028
3 Petrogas (Basin) Ltd PT Pertamina EP 0.5 MMCFD 3 years (2018-2020)
4 Petrogas PT Pertamina (Refinery Unit VII Kasim) 0.5 MMSCFD 4 years (2016-2020)
5 PT Pertamina Hulu Energi Jambi Merang, Talisman (Jambi Merang) Ltd, Pacific Oil and Gas (Jambi Merang) Ltd Pertamina Gas

(for oil lifting, electricity and RU II Refinery, Dumai)

6-23 BBTUD 5 months (2018-2019)
6 Medco E&P Indonesia PT PGN

To meet city gas network project in Musin Banyuasin Regency

0,25 MMSCFD. 10 years (2017-2027)
7 PT Pertamina Hulu Energi Offshore North West Java PT Pertagas Niaga (for industry needs) 5 BBTUD 9 years (2017-2026)

Written by Roffie Kurniawan, email:

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