Indonesia Pushes to Revive Gas Sector

Indonesia is home to large gas reserves, and produces twice as much as it consumes and yet there is a shortage of gas for industry and other consumers. 

While the government has great plans to use natural gas as one of the main sources of energy, progress in this sector has been slow, owing to the lack of exploration investment and infrastructure development.  

Indonesia will need at least $32.42bn to finance the development of its national gas pipeline project, which will connect gas fields and gas stations in the country’s major cities, local media The Jakarta Post reported on 16 September. 

Out of the total amount, some $420mn will be needed for liquefied petroleum gas processing and distribution facilities, $13bn for construction of gas stations, $8.5bn for pipeline development, $8bn for liquefaction and re-gasification projects, and $2.5bn to establish city gas networks. 

According to Kusdi Widodo, Pertamina Gas’ general manager for liquefied natural gas (LNG), in order to fulfil the demand of gas energy till 2025, Indonesia will require at least 4.4 Bcf/d of imports. 

Full article available in Natural Gas World Magazine Issue 4.