PRABOWO SUBIANTO is President and Ceo PT Nusantara Energy (Migas, Pertambangan, Pertanian, Kehutanan Dan Pulp) Jakarta, Indonesia (Rekam Jejak) Indonesia gas production and discovery are increasing substantially over the recent years. This is a favorable situation as the country economic growth requires gas among other types of energy to boost its growth. Indonesia has significant potential gas reserves and unexplored basins. The current proven reserve is assumed to be able to supply gas production for about 48 years, with more supply if new reserves are found. Unfortunately, since most of the gas resources are located in remote areas, it is difficult to develop gas transmission infrastructures in the form of pipelines, due to the lack of investment and geographic barriers. Therefore, fulfilling the demand for domestic natural gas remains a challenge that must be solved. The forecast for Indonesia’s domestic natural gas demand is bright. The upstream oil and gas authority, SKKMIGAS, estimates that domestic natural gas demand will grow by 5.1 percent per year from 2.9 billion cubic feet per day (BCFD) in 2007 to 5.5 BCFD in 2020, fueled by new power generation and industry demand. Going forward, the country’s power needs will remain high, with more than 10,000 megawatts of new capacity required by 2015 to prevent a long-term power crisis. The state-owned electricity company PLN plans to reduce production and operating costs by increasing natural gas use from 21 percent to 40 percent by 2015. Therefore, the Indonesian government is looking at LNG as a promising solution to natural gas infrastructure problems. The 1st LNG Receiving Terminal (FSRU) has been in operation offshore Jakarta last year and it’s a milestone for Indonesia as it’s the 1st in Asia Pacific and 4th in the World. Another 2 FSRUs are planned to be in operation offshore Lampung and Central Java, as well as many Small Scale LNG Plants to be installed in Eastern Part of Indonesia. This condition is opening up a great business opportunity for players in gas industry.
Posted on: Wed, 04 Jun 2014 06:57:46 +0000
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