The government plans to evaluate several gas contracts, which are due to expire, in order to meet the future domestic demand for gas.
“Local gas producers need to focus on domestic supply, rather than looking to extend their contracts with foreign companies,” State SOE Minister Mustafa Abubakar told reporters Friday.
He pressed gas companies to display their commitment to meeting domestic needs, which are predicted to skyrocket.
Indonesia is the world's third-largest liquefied natural gas (LNG) exporter. The Central Statistics Agency (BPS) said that gas exports had increased by 1.3 percent from last year to US$475 million in 2009.
Japan and South Korea are the main buyers of Indonesian gas.
According to Mustafa, the domestic demand for gas had increased significantly, particularly for several add-on gas- and coal-fired power plants that belonged to state-owned electricity monopoly PT PLN and several state fertilizer companies.
“Due to the electricity crisis and the growth of the economy, the domestic gas demand will rise,” Mustafa said.
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