LNG Export Value Continues To Rise, Government Optimizes Domestic Absorption So That The Economy Is Maintained

Director General of Oil and Gas Tutuka Ariadji. (Photo: Maria Trisnawati / VOI)

JAKARTA - The export value of Indonesian LNG and Indonesian Pipe Gas products in the world market continues to increase after the 2020 COVID-19 pandemic.

In 2022, the total export value of LNG Indonesia will reach 6.6 billion US dollars, an increase from the previous year which was recorded at 4.6 billion US dollars.

Meanwhile, the value of Gas Exports through Indonesian Pipes in 2022 will increase to 3.13 billion US dollars compared to 2021 with a value of 2.84 billion US dollars.

Director General of Oil and Gas Tutuka Ariadji said the current government's strategy is to meet domestic gas needs and balance with exports so that the economy is maintained.

"So domestic needs are met, but the economy of the company, the economics of the field is also maintained. What guarantees the sustainability of the company or the economics of the field," said Tutuka, quoted on Thursday, November 2.

He detailed that several export destination countries such as China, Korea, Japan, Taipei, and China continue to show high consistency and even the number of requests continues to increase.

China, for example, as the country with the greatest energy needs compared to other countries, the LNG source is mostly met by Indonesia.

"And for Indonesia, he (China) took the most. Then for natural gas export by pipeline with pipes, it goes to Singapore, first to Singapore, then to Malaysia. Of course, this has included a large total revenue, so the export value is approximately 6.6 billion, up from 4.6 billion in 2021, yes, for 2022," said Tutuka.

Tutuka explained that the National natural gas reserves to date are quite large, namely 54,830.40 BSCF or 54.83 TSCF which were declared PROven, probable and probable (3 P) from oil and gas fields spread from Sumatra, Java, Kalimantan Sulawesi to Papua.

In fact, the government continues to strive to improve it by providing convenience in exploring both in terms of communication, the process of controlling the work area, managing the work area, and incentives.

The optimism of finding natural gas reserves was also followed by an increase in the volume of domestic natural gas utilization.

Tutuka said, until August 2023, the volume of domestic natural gas utilization had reached 3.725 BBTUD. Where since 2012 until now, the volume and value of natural gas utilization for domestic is greater than exports.

"So the total production of 5.446.90 BBTUD is 68 percent for domestic purposes. So a development that leads to independence both energy and nationally," explained Tutuka.

Tutuka explained that currently the largest use of natural gas is for the Industrial sector, which is 28.52 percent, then 12.62 percent of fertilizer, and 12.22 percent of electricity followed.

"There is still room for export by 23.43 percent and Gas Pipe by 8.18 percent," concluded Tutuka.