LNG Business In Indonesia Is Considered To Have A Good Prospect

JAKARTA - Advisor to the Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Nanang Abdul Manaf said that the liquefied natural gas (LNG) business in Indonesia in the future has good prospects.

"Demands (LNG) will continue to increase in the future. So, you're not worried about LNG going forward," said Nanang when met after attending the Indonesia Petroleum Association Conference and Exhibition (IPA Convex) 2024 event in Tangerang, Banten, quoted from Antara, Thursday, May 16.

Nanang explained that LNG is an alternative for industry players who have difficulty getting natural gas for the production process.

Sometimes, said Nanang, the position between natural gas sources and industrial locations is separated by a long distance.

"For example, the market is in West Java, the source is in Tangguh (West Papua). If you install a pipe, it's impossible at all," said Nanang explaining.

Therefore, what is an alternative for industry players is LNG, because it is not limited to the existence of gas delivery infrastructure, such as pipes. Pupuk and PLN, he said, are domestic industries that require a lot of gas.

In addition to meeting domestic industrial needs, Nanang also said that LNG could be sent to other countries, such as Japan, Korea, China.

"And their demand (Japan, Korea, China) also continues to increase. They have said the gas demand is even greater," said Nanang.

If the infrastructure in the form of gas distribution pipes has improved, Nanang said Indonesia could focus its LNG on exporting.

"We have to increase the capacity (LNG production)," said Nanang.

Previously, PGN Corporate Secretary Rachmat Hutama made efforts to meet the natural gas needs of all customer segments by providing LNG solutions.

Efforts made include utilizing the LNG supply allocation launched by SKK Migas and will launch a number of LNG cargoes in May 2024.

Rachmat added that PGN's role as a distributor of natural gas volume also complied with the government's stipulation, namely Kepmen No 91 of 2023 and a contract with suppliers.