Indonesia to Spend $8.5b to Support Gas Supply

Indonesia may invest close to $8.5 billion in nine gas infrastructure projects to boost utilisation of natural gas in the country.

These projects are likely to take about six year to complete.

The move has been prompted by inability of domestic consumers to access cheap gas due to export of the energy source. Local consumers are willing to pay a higher price than the price at which gas is exported.

In 2011 natural gas supply for domestic market was 4,366 mmscfd, or 56.78 percent of the total sales of 7,688 mmscfd, with the remaining 43.22 percent, or about 3,322 mmscfd, earmarked for exports.

The year before, the gas sold in the domestic market totaled 4,342.7 mmscfd, which was about 50.18 percent of the total sales of 8,654.29 mmscfd.