Indonesia Is Predicted to Have Gas Surplus in 10 Years

Oil and Gas Source

Indonesia has abundant natural wealth. One of Indonesia’s natural resources is natural gas. This was revealed by the Ministry of Energy and Mineral Resources (ESDM) noting that Indonesia’s gas resources are abundant. Indonesia is also predicted to have gas surplus in 10 years.

Director General of Oil and Gas Tutuka Ariadji revealed that Indonesia’s oil and gas resources will be abundant in the future.

Tutuka revealed this at the Parallel Energy Transitions Working Group (ETWG) Agenda of the G20 Indonesia Presidency, entitled Exploring Short-term Solutions for the Global Gas Crisis, Monday (29/8/2022).

Indonesia’s oil and gas balance (Migas) in 2022-2030 is predicted to be able to meet all domestic production demands, both from the existing supply, project supply, and potential supply. Plus the role of LNG will be more optimal. According to the projection, there will be an increase in LNG production in 2028.

“In the next 10 years, Indonesia will have a gas surplus of up to 1,715 MMSCFD, originating from potential projects in various regions in Indonesia,” said Tutuka.

The gas projections come from several giant Indonesian gas projects, including the Masela Block perpetual gas field project which is predicted to start producing in the middle of this decade. Then the Indonesian Deepwater Development (IDD) project is expected to support the production of Bontang Liquefied Natural Gas (LNG).

“There are also Andamans and Agung, which are expected to contribute to the gas balance in the long term,” he added.

Bontang LNG production in 2026 is estimated to reach 28 cargoes, then it will double to 56 cargoes. Meanwhile, for the production of the Masela Block, it is estimated that in 2008 LNG production will be around 150 cargoes and until 2035 the production will be relatively stable.

Tutuka explained that as much as 64.3% of Indonesia’s gas production in 2021, namely 5,734 BBTUD, was used to meet domestic needs. Meanwhile, of the total production, 27.45% is for industrial needs, 22.18% for exports in the form of LNG, 12.08% for fertilizers, 13.14% for exports, and 11.9% for electricity.

Indonesia utilizes gas for domestic needs in the form of LNG and LPG at 8.56% and 1.56%, respectively. A small portion of the remaining consumption is for city gas and transportation fuel.

Tutuka also said that Indonesia was not directly affected by volatile gas market conditions, in which prices continued to rise. “As a producer and exporter, Indonesia is not directly affected by gas market conditions,” he said at the forum.

Indonesia will also be able to export LNG to several countries throughout 2021 with sales volume reaching 460 million MMBTU. China is the largest export destination with a volume of about 250 million MMBTU, followed by South Korea at 80.23 million MMBTU and Japan at 63.76 million MMBTU.

Meanwhile, downstream LNG Indonesia exports as much as 111 million MMBTU with the main destinations being Japan, South Korea, and Chinese Taipei.