Govt to complete gas balance study this month

The government would complete a study on the country?s natural gas supply- demand balance this month, which will be crucial for any decision whether Indonesia will continue exporting its gas, Director General Oil and Gas at the Ministry of Energy and Mineral Resources Luluk Sumiarso said on Wednesday.

Luluk said that the ?gas balance? will identify current and potential suppliers of natural gas as well as current and potential users.

?The Oil and Gas Law says we have to prioritize the local market. However, it will be good if we can supply the domestic demand as well as sell it to export markets,? Luluk said.

Over the past decades, Indonesia has prioritized selling its natural gas to export markets. However, as domestic demand for the commodity is growing, the government is considering cutting its gas exports. For instance, the government has yet to give a green light for extension of several LNG sales contracts with some Japanese buyers that will expire in between 2010-2011. (Godang)