Gas Processing is Produced by Gulf Publishing Company

Your source for technology information for the gas processing industry


Indonesia unlikely to need imported LNG until 2020 as output to rise

JAKARTA (Reuters) — Indonesia is unlikely to need to import LNG until at least 2020 due to robust gas production at home, a senior government official said on Wednesday, even as the government has pushed increased domestic gas consumption.

"Our production has turned out to be better than predicted," the country's Director General of Oil and Gas, Wiratmaja Puja, told reporters on Wednesday. "So there's a high possibility we won't need to import in 2019."

Puja was referring to higher-than-expected output from the Jangkrik gas field operated by Eni. The field was designed to produce 450 MMcfd of gas but output could be up to 600 MMcfd, he said.

Currently the world's fifth-biggest exporter of LNG, Indonesia has lost market share to new production from Australia and Qatar and as output is reserved for domestic needs. However, the domestic gas market has not developed as anticipated even after the government promoted the fuel to replace coal for power plants and as an industrial fuel.

Power plant developers in Indonesia are still relying on cheaper coal, however, which has curtailed the development of gas infrastructure.

Puja also called into question imports after 2020 when he mentioned BP's Tangguh Train 3 project will supply more gas to Indonesia from 2020 onwards.

"At the end of 2020 we won't need to import," he added.

The comments come even as Australia's Woodside Petroleum inked a contract in April to supply Indonesia's state-owned energy company Pertamina with LNG from 2019 to 2034. Pertamina also has a LNG import deal with US-based Cheniere Energy Inc from 2018 and ExxonMobil Corp from 2025.

Puja suggested those supplies could be redirected to other LNG buyers in Asia, particularly Bangladesh. "We are pushing Pertamina to go global," he said.

When contacted by Reuters, Pertamina's Vice President for LNG, Didik Sasongko, supported that idea.

"We can use it for trading or to optimize Pertamina's LNG portfolio," Sasongko said, referring to the Cheniere deal. "There's flexibility on delivery," he said when asked about the Woodside imports.

Meanwhile, Puja said that Indonesia is looking for buyers for 16 to 18 uncommitted LNG cargoes for this year.

He expects an average of 50 to 60 uncommitted cargoes per year until 2035.

Reporting by Wilda Asmarini and Bernadette Christina Munthe; Writing by Fransiska Nangoy and Fergus Jensen; Editing by Christian Schmollinger


Copyright © 2016. All market data is provided by Barchart Market Data Solutions. Futures: at least 10 minute delayed. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  Cmegroupicon                                     Icelogo

FEATURED COLUMNS

Editorial comment
-Adrienne Blume
On the opening day of Gastech 2017, which took place in April in Tokyo, Japan, international energy leaders examined how gas suppliers are adapting to the changing global market.
GTL Viewpoint
-Dmitry Popov
New wave of GTL technology offers solutions for stranded gas, environment


ADIP ULTRA: ADIP-X Reimagined

View on Demand

Shell Global Solutions International BV (Shell) is launching the improved process technology ADIP ULTRA, for cost-effective removal of CO2 down to <50ppmv. The ADIP ULTRA process is applicable in gas plants, LNG, pre-NGL, refinery HMUs and gasification syngas.
Why attend?
•Discover how looking back at decades of ADIP and ADIP-X operational experience has led to the cost effective ADIP ULTRA process
•Understand how Shell’s new absorption column internals can further enhance process performance
•Learn how Shell is a reliable partner of choice who helps you get the most out of your unit
•An opportunity to ask questions to Shell’s technical experts

May 9, 2017 9am UTC

View on Demand

 

Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2015 Gulf Publishing Company.