GOVT CONSIDERING TO RE-INJECT GAS INTO GROUND

Jakarta, April 29 (ANTARA) - The government is studying to re-inject gas which was supposed to be supplied to the liquefied natural gas refinery in Bontang, East Kalimantan, as demand for gas from the plant had declined.

The director general of oil and gas of the ministry of energy and mineral resources, Evita Legowo, said here on Tuesday the re-injection was one of the options to prevent wells from stopping their production.

"There are three kinds of injection technology. We have never used it," she said.

She said the gas that has been reinjected could be taken again when the price was right.

She said the European countries such as Germany had been keeping their gas in reservoirs. "They import gas for a year then inject it into the ground and take it out again when they need it," she said.

Besides injection, option to make it into lequified petroleum gas (LPG) is also being studied as part of efforts to overcome demand decline from Bontang.

The upstream oil and gas regulatory body (BP Migas) predicts the drop in LNG exports this year could reach 18 cargos.

The drop in demand from Japan, Korea and Taiwan is feared to disrupt production of the wells that supply gas to Bontang.

If the wells stop producing it would take up to one year for the wells to start resume production.