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Indonesia may become LNG importer, association says
Indonesia faces the risk of becoming a net natural gas importer despite its rich gas reserves and position as a net LNG exporter and one of the top exporters in the world.
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Mini size, max benefits: State-owned electricity company PLN operates a mini liquefied natural gas (LNG) terminal in Benoa port in Bali. The facility was built by PT Pelindo Energi Logistik, a subsidiary of state-owned port operator PT Pelindo III. (Tribunbali)
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t is projected that Indonesia will become highly reliant on imported liquified natural gas (LNG) in the future, as demand in the country has not been met with a sufficient increase in domestic supply.
Salis L Aprilian, senior advisor to the Indonesian Gas Society (IGS) said on Thursday that the increased role of natural gas – as a transitionary energy source on the road toward renewables – would fuel demand in the country, as it is deemed to have much lower emissions than other fossil fuels.
Moreover, most of the country’s local LNG production is for the export market, as quoted from Kumparan. Indonesia has also been struggling to maintain output amid a natural decline in domestic gas fields.
“Therefore, Indonesia could be a net importer of LNG in the future,” Salis said, as quoted from Antara, citing a study conducted by IGS and research firm Rystad Energy.
Read also: PLN mulls importing LNG amid likely shortfall in local gas supply
Indonesia faces the risk of becoming a net natural gas importer despite its rich gas reserves and position as a net LNG exporter and one of the top exporters in the world.
The country exported 16.22 million tonnes of LNG in 2023, equivalent to 4.78 percent of the world's total LNG exports, S&P Global data showed.
