Indonesia needs $32 billion investment for gas infrastructures

The government is inviting private sector to invest in gas infrastructure projects, citing that Indonesia needs a total of US$32.42 billion investment to develop gas infrastructures across the country.

Director General of Oil and Gas IGN Wiratmaja said in a statement on Wednesday that since the government has limited funds and state budget is prioritized for projects which directly benefit the people in general, the involvement of private investors in the projects is necessary.

The government will provide incentives. ?We are waiting for proposals on the incentives. What kinds of incentives do they want?? Wiratmaja said.

He said under the National Energy Police, the portion of natural gas in the national energy mix should be increased 25 percent by 2025. On the other hand, the national gas reserves are spread in various locations of the country. In order to reach the target, there should be massive development of gas infrastructures in order to bring the reserves to areas where demand is centered.

The infrastructures that need to be built include gas pipelines which need a total investment of US$8.5 billion; LNG and regasification facilities which need $8 billion investment; natural gas stations which need $1.3 billion investment; and city gas networks which need $2.5 billion investment; and LPG infrastructures which need $0.42 billion investment.

Editing by Johannes Simbolon