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LPG imports, consumption continue to rise
Imports of liquefied petroleum gas (LPG) is expected to continue rising alongside consumption as domestic production falls
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Residents queue to buy 3-kilogram liquefied petroleum gas (LPG) canisters during a market operation in Mojosongo, Jebres, Surakarta, Central Java, last year. (Antara/-)
Imports of liquefied petroleum gas (LPG) is expected to continue rising alongside consumption as domestic production falls.
During the opening of the 2017 LPG Indonesia Forum, Setyorini Tri Hutami, the Energy and Mineral Resources Ministry’s director for downstream oil and gas business guidance, said that the higher volume of LPG imports was a problem the government hoped to tackle alongside state-owned oil and gas firm Pertamina.
“Our imports continue to increase while production drops,” she said on Tuesday at the Shangri-La Hotel in Central Jakarta.
(Read also: RI to buy LPG from Iran, team up on energy)
Data from the Energy and Mineral Resources Ministry show that total consumption of LPG rose to 6.67 million metric tons last year, up 1.5 percent from 2015. This has forced imports to also rise to 4.42 million metric tons in 2016 from 4.3 million in 2015.
Furthermore, domestic production of LPG has dropped to 2.24 million metric tons in 2016 from 2.27 million the previous year.
Meanwhile, Pertamina’s senior vice president of the integrated supply chain (ISC) said the firm was expecting imported LPG to rise to 70 percent of total LPG consumption this year.
“We expect to import more than 70 percent. Indonesia will become even more dependent on LPG imports,” he said. (bbn)
