Indonesia Plans Moratorium on Gas Exports

Indonesia is planning a moratorium on the signing of new contracts for natural gas exports as domestic supplies remain tight amid strong demand.

Gas exports did generate income for the state, but using it directly for domestic purposes would have “multiplier effects” that boosted local industries and the national economy, Jakarta Globe reported Evita Legowo, the director general for oil and gas with the Energy and Mineral Resources Ministry as saying.

The country is likely is produce 5,118 million standard cubic feet per day (mmscfd) of gas during 2012-20. It also plans to drill 17 gas fields.

Four new large-scale gas fields are expected to begin operating in the coming years.

Chevron Indonesia offshore field is expected to start production of 830 mmscfd in 2014, Inpex Corporation-run Masela block, with 400 mmscfd starting in 2017, British Petroleum-run Tangguh project, at 870 mmscfd starting in 2018 and Pertamina-run East Natuna block, expecting 1,000 mmscfd starting in 2020.