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View all search resultsWeak domestic demand threatens 2030 gas goal
Weak demand due to the snail's pace of infrastructure development was the main obstacle in achieving the government's 2030 production target, industry experts have said.
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ot enough growth in domestic gas demand is undermining the government’s upstream ambitions to ramp up production, as is the lack of progress in infrastructure development, a recent webinar hosted by the Upstream Oil and Gas Special Regulatory Task Force (SKK Migas) has heard.
Indonesia’s weak growth in gas demand, compounded by the slow expansion of gas pipelines, risks deterring the investments needed to double the natural gas output by 2030 to 12,300 million cubic feet per day (mmscfd), executives from the Society of Indonesian Petroleum Engineers (IATMI) and the Indonesian Petroleum Association (IPA) said during the webinar on Nov. 20.
The two industry associations were highlighting the key obstacles to achieving SKK Migas’ aim to double gas output over the next 10 years, a plan meant to spur domestic industrial growth and exports to reduce the gaping oil and gas trade deficit.
“Gas needs a market,” said IATMI secretary-general Hadi Ismoyo, pointing out that “we were too complacent with fuel [infrastructure], such that we forgot gas infrastructure”.
Statistics Indonesia (BPS) data shows that Indonesia imported US$1.08 billion in oil and gas in October this year, down 38.54 percent year-on-year (yoy) from October 2019, prior to the emergence of COVID-19 anywhere in the world. In comparison, Indonesia’s oil and gas exports reached $630 million in October 2020, dropping 26.89 percent yoy from October last year.
Read also: /news/2020/03/09/indonesia-aims-to-double-gas-production-by-2030-with-major-projects-in-pipeline.html" target="_blank">Indonesia aims to double gas production by 2030 with major projects in pipeline
In its bid to jack up the gas supply, SKK Migas has named four gas-rich upstream projects as “national strategic projects”, making them eligible for more government incentives and attention. It also has many more gas-rich projects, albeit smaller ones, in the pipeline.
