Have Big Reserves, Natural Gas Will Become Alternative Energy Towards Energy Transition

JAKARTA - The government continues to optimize the management and utilization of natural gas as the main alternative energy source in the process of transitioning energy from fossils to renewable energy.

The Director General of Oil and Gas of Earth represented by the Coordinator for the Preparation of the Oil and Gas Program, Rizal Fajar Muttaqin, said that the domestic natural gas reserves are quite large with competitive prices when compared to other fossil energy sources.

"Currently, natural gas management by the Government is prioritized to support national development," he said, quoted on Monday, March 4.

Rizal said that in carrying out national natural gas management, the Government continues to strive to increase exploration activities to find new reserves, optimize natural gas production and develop infrastructure continuously to support domestic natural gas distribution so that it is in line with natural gas needs.

Rizal said the Government encourages all natural gas business entities to build infrastructure in an integrated manner, including transmission and distribution pipeline networks, LNG receiving terminals, and other non-piped modes so that they can be utilized across sectors.

"In addition, demand management is also carried out which is close to the potential supply or natural gas infrastructure following the principles of people's follow energy so that it will be able to increase efficiency and provide incentives for certain sectors that have a significant impact on added value and the multiplier effect of the national economy," he explained.

Rizal said that currently Indonesia's natural gas reserves are more than oil reserves, but Indonesia's gas production is expected to decline in the next few years due to the natural decline in existing gas wells.

"The government continues to search for new gas fields through the exploration process, but this requires considerable time and investment," he continued.

In the next ten years, said Rizal, it is projected that the largest gas consumers will come from the industrial sector, and will be followed by the electricity and fertilizer sectors.

"Existing Supply from fields that are currently producing can meet contracted natural gas needs. If Project Supply and Potential Supply is onstream according to planning, it is estimated that there is still gas potential to meet domestic needs," concluded Rizal.