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Govt wants to bump up gas imports from US
Indonesia is considering to boost imports of liquefied petroleum gas (LPG) and liquefied natural gas (LNG) from the United States, but experts urge caution to avoid harming local industries and stress prioritizing long-term national interests over trade pressure.
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Domestic supply: The Oyong oil and gas rig in the Sampang block, located in the Madura Strait off the coast of East Java, is pictured in this undated photo. (SKK Migas/SKK Migas)
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ndonesia is considering to boost imports of liquefied petroleum gas (LPG) and liquefied natural gas (LNG) from the United States, but experts urge caution to avoid harming local industries and stress prioritizing long-term national interests over trade pressure.
Coordinating Economic Minister Airlangga Hartarto said on Tuesday that the government could increase imports of US LPG and LNG as part of a response to Washington’s threat of imposing a 32-percent import tariff on goods imported from Indonesia.
Upstream Oil and Gas Regulatory Special Task Force (SKK Migas) head Djoko Siswanto said the agency would avoid importing LPG and LNG in April and May this year considering the availability of sufficient domestic supply from the Tanggung, Bontang and Donggi Senori blocks.
“So far, we’ve never imported. Thank God, supplies for April and May will be met domestically,” he told reporters in Jakarta on Wednesday.
Djoko explained that the current supply came from LPG and LNG volumes that had initially been designated for export but had since been redirected to state-owned electricity and gas companies PLN and Perusahaan Gas Negara (PGN).
“We plan to reduce gas exports from Sumatra to Singapore for June. Since Singapore will then face a shortfall, we’ll compensate that by maximizing gas output from Natuna. For the second quarter, God willing, [domestic] supply will be secure,” he said.
“We’ll reassess in the third and fourth quarters to determine whether imports will be necessary.”
