Kadin sees LNG as answer to supply uncertainty

With the lack of supply certainty, gas-consuming industries in the country may have to be ready to shift attention to liquefied natural gas, Indonesia?s Chambers of Commerce and Trade (Kadin) said.

Achmad Widjaja, Kadin?s Industrial Gas Coordinator, said LNG may be the best answer to address uncertainty over gas supply delivered though pipes. Although he admitted that the price, at a range of US$10 to $12 per mmbtu would be an issue, he said Thursday as reported by Bisnis Indonesia.

The gas supply concern was first aired by Sofjan Wanandi, Chairman of Indonesia?s Employees Association (APINDO), who said that the planned increase in gas price sold to industries by state gas distributor PT Perusahaan Gas Negara (PGN) should be followed with PGN?s guarantee over the amount of supply.

The price increase is scheduled to take effect on September 1, but PGN has earlier said it may have to be postponed, pending the issuance of a decree from the Director General of Oil and Gas at the Energy and Mineral Resources Ministry.(*)