Gas volume allocated for domestic market to exceed export by year-end

By Bernard Loebs

The natural gas volume allocated for the domestic market is expected to surpass the volume allocated for export for the first time by the end of this year, according to a source.

Based on August 2013 data, the gas volume allocated for the domestic market is estimated to reach 3,530 mmscfd (3,650 bbtud) by the end of this year, higher than the estimated export volume of 3,216 mmscfd (3,325 bbtud).

As such, the composition between domestic market and export will be 52 percent and 48 percent, respectively.

The increase in the supply of natural gas to the domestic market has been made possible in line with the operation of infrastructure gas facilities such as the floating storage and regasification unit (FSRU) in the Jakarta waters operated by PT Nusantara Regas to facilitate gas use by the consumers.

Nevertheless, the upstream oil and gas authority SKK Migas noted that domestic gas infrastructure facilities remain limited, causing the domestic market to be unable to absorb fully the allocated gas.

For instance, in 2013, the realized LNG allocation for the Nusantara Regas FSRU is estimated at 21 cargoes of the initial target of 27 cargoes. Fertilizer firm PT Pupuk Iskandar Muda is expected to only absorb 4 cargoes of the targeted 5 cargoes.

Editing by Reiner Simanjuntak