RI to cut down gas export volume in 2015/2016

Tuesday, April 23 2013 - 02:08 AM WIB

By Godang Sitompul

Indonesia is expected to significantly reduce its gas export volume in 2015-2016 as greater volume will be allocated for the domestic market with the completion of a number of floating storage and regasification units (FSRUs) in Lampung, Banten, and Arun (Aceh).

?We?ll need more gas because many FSRUs will start operating. That?s why gas for export will be reduced in 2015-2016,? said Head of Natural Gas Commercialization Division at upstream authority SKK Migas, Popi A. Nafis to Petromindo.com Tuesday.

Popi said that SKK Migas will prioritize the gas output produced by the oil and gas production sharing contractors (PSCs) operating in the country for domestic use to help support economic growth.

Popi added that SKK Migas was currently in the process of calculating the real gas demand at home. ?Our team is discussing the details with the FSRU operators and also with PLN (state electricity firm).?

SKK Migas has earlier said that the volume of gas allocated for the domestic market this year will be greater than the export volume amid rising demand from various industries at home.

SKK Migas Chairman Rudi Rubiandini said that gas allocated for the domestic market this year will reach 4 billion mmscfd, while export volume is projected at 3.8 billion mmscfd.

Editing by Reiner Simanjuntak

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