Indonesia to boost LNG output by 7mtpa: Report

One of the oldest LNG exporters, Indonesia's production currently is around 23 million tonnes per annum (mtpa), while Qatar announced recently its LNG production had crossed 25 mtpa mark. Qatar has plans to increase LNG production to 77 mtpa by the end of 2010.

"There is no question of having any bitterness," Indonesia's governor to Opec, Maizar Rahman, told The Qatar's Peninsula in an interview Sunday.

He said his country hoped to add seven million tonnes of annual capacity to the present LNG production level over the next three years and potential buyers include China and the US, among others.

Rahman said more capacities were expected to be created in future, especially from its reserves in the east of the country. Domestic demand for LNG is growing.

Indonesia's crude production presently is one million barrels a day and the entire production is for local consumption. To raise production to 1.5 million barrels a day, a lot of investment is needed.

At least $2bn is required for exploration and to find new fields, said Rahman. Proven oil reserves total 4.5 billion barrels which at the current rate of exploration can last for 10 years.

But the country has probable reserves almost equal to the proven levels and this means that the resource can last for 20 years.

"New discoveries can further augment reserves, but for that we need to make huge investment," said Rahman.(*)