European Countries Requesting Gas Supply Must Invest In Indonesia

Illustration (Photo: Doc. Antara)

JAKARTA - The energy crisis that occurred on the European continent has an impact on domestic energy demand.

The Special Task Force for Upstream Oil and Gas (SKK Migas) reports that there is currently a demand for Liquefied Natural Gas (LNG) supplies from several European countries.

However, this demand cannot be fulfilled by Indonesia, because the available gas supply is only for companies that have signed contracts with Indonesia.

In response to this, the Secretary General of Aspermigas, Moshe Rizal, revealed that he had met and was involved in talks with the EU Ambassador who complained about the depleting gas demand in European countries as a result of the limited gas flow from Russia.

"I suggest that if they really want gas from us, they should increase their investment in Indonesia, such as investment companies Shell, BP and others. The government can also persuade them not to leave Indonesia," he said in Jakarta, Monday, July 18.

Because, said Moshe, gas is the most sought after commodity to replace the limited supply from Russia.

According to him, this is an opportunity that Indonesia should take advantage of.

"But is our country attractive enough? It's not just Indonesia that supplies gas. There are still cheaper countries like Qatar and America whose production costs are cheaper," he added.

Previously, SKK Migas Deputy for Finance and Monetization, Arief Setiawan Handoko, said that currently there is a demand for liquefied natural gas (LNG) supplies from several European countries.

"Indeed, there is demand for LNG from several countries in Europe due to the limited gas supply from Russia. But unfortunately our gas supply to be able to deliver LNG there is currently not working for us," said Deputy for Finance and Monetization of SKK Migas, Arief Setiawan Handoko at a press conference on his achievements. and the performance of upstream oil and gas in the first semester of 2022 in Jakarta, 15 July.

For now, said Arief, SKK Migas only distributes LNG requests through companies that already have contracts with Indonesia.

He gave an example, the Total company which was sent through a Singapore company.

"We have distributed it through Total Gas & Power Asia Private Limited (TGPA Ltd.). The others, indeed, we have not been able to realize to send LNG. While waiting for Marsela, maybe," he continued.

Previously, on Monday, July 11, Russia stopped the flow of gas in the largest single pipeline that carries Russian gas to Germany for maintenance reasons.

However, European countries are concerned that the planned 10-day gas line closure may be extended due to the war in Ukraine.