Jl. Ganeca 10, Bandung, West Java - Indonesia

Natural Gas Allocation in Indonesia

Author: Alpin Arief – Education and Workshop Division

Allocations of natural gas for domestic re-ride in 2014. Under the contract, this year allocated natural gas for domestic consumers was 3,782 billion British thermal units per day (BBTUD) or 52.7 percent. Head of Public Relations, Special Unit Upstream Oil and Gas (SKK Migas) Elan Biantoro said that the distribution of gas to the domestic market continued to increase an average of nine per cent since 2003.

In 2012, the share of domestic gas amounted to 3,550 BBTUD or 49.5 percent. This allocation increased to 3,774 BBUTD, or 52.1 percent in 2013. Meanwhile, the volume of gas that is exported has declined from 3,631 BBTUD or 50.5 percent in 2012, to 3,402 BBTUD in 2013 or 47.9 percent. In 2014, the allocation dropped again to 3,393 BBTDU or 42.7 percent.

According to Elan, in 2013 the allocation of domestic gas by 45 percent is used for industrial purposes, electricity and fertilizer.

In 2013, the largest utilization of natural gas held by the industry with a share of 19 per cent or 1,316 BBTUD, while the allocation of LNG and natural gas as much as 1097 BBTUD of total gas production used for electrical purposes. As for the fertilizer plant, which is currently under construction several new fertilizer plants in order to revitalize, utilizing gas amounting to 735 BBTUD or 10 percent.

Steps taken to increase supply for domestic, among others, optimizing the delivery of liquefied natural gas (LNG) for domestic. This year, supply of domestic LNG reached 38 cargoes, higher than the realization in 2013 that as many as 25 cargoes.

 

We all admitted that domestic gas demand continues to increase. However, the supply of gas from upstream to domestic consumers is still interrupted by the lack of infrastructure. Not infrequently, there is some domestic gas quota that is not absorbed due to lack this facility. We expect the gas distribution infrastructure could soon be enhanced so that the absorption of the gas in accordance with the contracted volume.

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