Observer: Indonesia Will Have to Begin Importing Gas in 2020
23 December 2014 18:14 WIB
TEMPO.CO, Jakarta - A member of the National Energy Agency (DEN), Rinaldy Halim, has predicted that Indonesia will have to start importing gas in 2020 because of the poor management of its oil and gas sector.
"By 2020, if Indonesia's long term contracts are not renegotiated, Indonesia will have to start importing gas," said Rinaldy at a book launch in Jakarta on Tuesday.
The former secretary general for Energi Terbarukan Indonesia said that at the current level Indonesia's exports still outweighed its imports.
According to Rinaldy, around 55 percent of Indonesia's gas exports are contracted to Singapore and Japan, while the rest are used to meet domestic demands. "However, as our domestic gas demands continue to climb, Indonesia will have to start importing gas from elsewhere, unless new reserves are found and properly utilized," he said.
As a result, Rinaldy called on the government to earmark more gas to meet the increasing demands—either by renegotiating the contracts or by exploring new gas fields.
"We have to extend the contract renegotiations. What we have successfully achieved in Tangguh needs to be continued, and we have to keep looking for new gas fields to meet demands," he said.
According to Rinaldy, the reduction of gas exports needs to be properly executed in order to meet both domestic demands, above all else. "Exports need to be curbed, because we need to prioritize domestic demands and our national reserves," he said.
ANTARA
