12 million tons of LNG exports will be shifted to domestic market

About 12 million of liquefied natural gas (LNG) that have been committed for exports would be shifted to meet the growing gas needs in the domestic market as part of the government's new energy policy, Kompas reported on Wednesday.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said in Jakarta on Tuesday that the government would in return develop new gas wells in deep sea areas in order to meet the LNG export commitments.

"This is part of the shifting of the country's energy policy. Prior to 1990, the development of major gas fields was mainly aimed for exports. Now the gas will be mainly used for domestic market," he told reporters following a Cabinet meeting.

According to the minister, in the past the development of major gas fields was aimed at fulfilling export commitment and at supporting the Trans ASEAN Gas Pipeline. However, with the implementation of the Oil and Gas Law No 22/2001, which sets a high priority on the use of gas for local market, the development of major gas fields will be then aimed at supporting the Integrated Indonesia Gas Pipeline (IIGP), he said.

Purnomo also said that the Cabinet meeting which was led by President Susilo Bambang Yudhoyono also discussed the presidential decree No. 1/2006 on the development of newest energy and the presidential decree No. 2/2006 on the use of liquefied coal for domestic use.

He said that such policy would be contained in the proposed law on the national energy which would be soon discussed with the House of Representatives. (*)