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Eni sends first shipment of Jangkrik LNG to Indonesian market

June 22, 2017

Eni on Thursday carried out its first shipment of liquefied natural gas (LNG) produced for the Indonesian domestic market by the Jangkrik field, which is located in Indonesia in deep water.

The Italian company started gas production from the Jangkrik field on May 15. The project comprises the gas fields Jangkrik and Jangkrik North East, located in the Muara Bakau block, Kutei basin, in the deep water of Makassar Strait.

Eni informed on Thursday that the 22,500 m3 cargo left the Bontang Liquefaction Plant, in East Kalimantan, and is headed to Bali, where it will be unloaded as part of a long-term LNG contract signed with PT Pertamina (PERSERO) in June 2015.

Eni’s CEO Claudio Descalzi said: “Jangkrik is a project developed with an excellent time-to-market, started-up ahead of schedule, exploiting synergies with the existing Bontang terminal and other neighboring gas discoveries. These can be put into production within the existing value chain. I am very proud of my team and the relationships built on the base on these successes with Pertamina, the Authorities and all the stakeholders.”

Gas produced from the field is processed onboard the FPU Jangkrik and then flows to the Onshore Receiving Facility. It then finally reaches the Bontang gas liquefaction plant through the East Kalimantan Transportation System. The LNG produced is sold under long-term contracts, partly to PT Pertamina and partly to Eni itself, which will sell it as part of the development of its international LNG portfolio, in line with the strategy announced in February.

Eni operates the Muara Bakau PSC in which it holds a 55% stake through its subsidiary Eni Muara Bakau BV. Other PSC partners are Engie E&P (through its subsidiary GDF SUEZ Exploration Indonesia BV) with a 33.334% stake and PT. Saka Energi Muara Bakau with an 11.666% stake. All activities are carried out in coordination with SKK Migas, the entity representing the Government of Indonesia.