Jakarta Post: Govt Prepares Rules to Anticipate LNG Imports

The Indonesian government will establish guidelines on the importing of liquefied natural gas (LNG) to ensure that the country’s anticipated inflow of the natural resource does not hamper domestic players in the industry.

The guidelines regarding imported LNG will be included in a presidential regulation on national gas governance that is currently under preparation, the Energy and Mineral Resources Ministry’s program director Agus Cahyono Adi said.

“The regulation will stipulate not only the permitted allocation and utilization of the gas but also other issues, such as timelines and criteria for its import,” Agus said on Wednesday.

Indonesia, Southeast Asia’s biggest economy, has long been a significant LNG supplier to the global market. The gas is sold overseas because domestic demand is still relatively low. However, the country’s rising energy demands amid declining crude oil production has prompted the government to call for greater utilization of gas in the domestic market to reduce dependency on petroleum products. MORE