KONTAN.CO.ID - JAKARTA. Indonesian upstream oil and gas regulator SKK Migas said a gas swap delivery from West Natuna Supply Group to deliver 27 Billion British thermal units per day (BBTUD) started on Friday, helping maintain supplies for domestic industry.

The gas, from Medco E&P Grissik Ltd and PetroChina International Jabung Ltd, will be delivered to state gas utility firm Perusahaan Gas Negara, SKK Migas said.

"This multi-party gas swap arrangement ensures that additional supplies for domestic industrial needs are well-maintained," SKK Migas chairman Djoko Siswanto said in a statement.

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"This step ensures the stability of domestic supply while other ongoing contracts continued to be carried out," he said.

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PGN last week reported declining supply from its gas suppliers in some areas due to an unplanned shutdown at existing gas suppliers.

In May, gas producers in western Indonesia signed a swap deal with PGN and Singaporean buyers Sembcorp Gas and Gas Supply Pte to shore up domestic supply. SKK Migas had previously said it was aiming for a swap to begin in June.

Under the terms of the deal, Indonesian producer MedcoEnergi, whose units operate within the West Natuna Supply Group and Corridor Block, which are also parties to the deal, will replace flows to Singapore from the Corridor Block with those from the WNSG, Medco has previously said.

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