Indonesia Surplus Gas In 10 Years, This Is The Cause..

Illustration (Photo: Doc. Antara)

JAKARTA - Indonesia is projected to experience a surplus in natural gas supply within the next 10 years.

Based on the Indonesian Gas Balance (NGI) 2023-2032, nationally Indonesia's gas needs until 2032 can be met from gas projects and potential supplies.

"In the next 10 years, Indonesia will experience a gas surplus in several regions in Indonesia. Our country still has a significant opportunity to produce LNG until 2035," said the Director of Oil and Gas Program Development represented by the Coordinator for the Preparation of the Oil and Gas Program Rizal Fajar Muttaqien to the media. quoted Monday, June 19.

In the next few years, he continued, there will be a supply of Liquefied Natural Gas (LNG) from Bontang, Tangguh and Masela which can be used for domestic needs to support the energy transition.

Rizal explained that Indonesia's national gas resources will be sufficient for the next few decades.

Given that natural gas will continue to grow, the government is working on production from existing fields, developing conventional and non-conventional fields, as well as increasing production through workovers and enhanced gas recovery (EGR).

Currently, 68 percent of gas is consumed by the domestic market, while the total gas distributed is 5,474 BBTUD.

"The Indonesian government is committed to increasing the use of gas for domestic purposes. In 2022, natural gas is mostly used to meet industrial needs, reaching around 29.25 percent," Rizal continued.

Then gas is also allocated for exports of 21.76 percent LNG, 12.58 percent fertilizer, 10.97 percent export, and 11.33 percent electricity. The government also utilizes gas for domestic LNG and LPG needs of 8.94 percent and 1.45 percent, respectively.

"A small part of the remaining consumption is for city gas and gas for transportation fuel," explained Rizal.

To increase the use of gas, the government has developed gas infrastructure across the country.

As an archipelagic country, building infrastructure is a challenge in itself, especially in eastern part of Indonesia with small and remote islands.

In the west, Indonesia has existing pipes, mini LNG regasification, LNG refineries and FSRU. Currently, the government is building a natural gas transmission pipeline network to connect Java Island and it is hoped that it can be continued until Sumatra.

"In the eastern part, the government plans to build FSRU and mini-regasification of LNG," he added.

The government also encourages the gasification program for power plants by replacing existing plants that currently use fuel into gas.

As a follow-up, the government issued ESDM Decree No. 249.K/MG.01/MEM.M/2022 concerning Assignments for the Provision of LNG and Infrastructure Development and Converting Fuel to LNG for the Supply of Electricity.

Based on the Kepmen, there are 47 locations and a total volume of LNG needs reaching 282.93 BBTUD.

Of these 47 locations, as many as 24 power plants have operational status, 3 power plants have procurement/construction status, and 20 power plants have planning status.