Publications

Demand for gas in West Java has been projected to exceed 1.5 BCFD by turn of the century. This projection is based on planned capacity expansions in the power generating, fertilizer, and steel sectors, and an almost explosive growth in the commercial and light industrial markets. Near term, gas consumption in West Java will double by the end of 1993, when new supplies from the ONWJ Contract Area comes on production.The ONWJ Gas Project is a $1 billion field development of 1.1 TCF of gas for delivery to PLN's power plants in Muara Karang and Tanjung Priok in North Jakarta. The supply of 260 MMCFD for an 11 year period calls for phased development of 17 separate gas accumulations in the central and western part of the Contract Area.The paper will review the development plan and the current status of implementation, the structure of gas supply and sales agreements, the general terms and conditions of gas sales, and the sensitivity of project economics to capital investment, rate of depletion, ramp-up schedule, and other external variables.