The gas swap scheme aims to ensure demand from Indonesia’s power sector and industry is met in anticipation of declining natural gas production in Sumatra, Pertamina said in a statement.
Flows from the Corridor Block will be re-diverted to meet Indonesia’s domestic gas needs, with Perusahaan Gas Negara as a domestic buyer. Medco also signed a separate gas sales agreement with PGN.
Indonesia’s oil and gas regulator SKK Migas had previously said it was aiming for a gas swap to begin in June.
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