New Projects Gather Momentum as Indonesia Aims to Double Gas Production by 2030

March 10, 2020

Indonesia is aiming to double its gas production over the next 10 years to 12,300 million cubic feet per day, with hopes of becoming one of the largest gas exporters in the world. SKK Migas, Indonesia’s upstream regulator, believes this is an attainable goal as new projects have started to gather momentum within the region. One of the key contributors to this goal will be Inpex’s Abadi LNG Project that will deliver roughly 1.8 billion cubic feet of gas per day.

The Abadi project will use an onshore LNG development scheme that Inpex, as the operator, is preparing for development in partnership with Shell in the Masela block. Inpex Masela owns a 65% interest in the project and Shell the remaining 35% stake. Discussions have begun, regarding sales and purchase agreements for the long-term LNG and natural gas supply from the project. There is potential for LNG to natural gas-fired power plants operated by PLN and natural gas of as much as 150M standard cubic feet per day to a co-production plant, which Pupuk Indonesia plans to construct.

Aside from Inpex’s Abadi plant, British Petroleum (BP) is developing the Tangguh Train 3 in West Papua, which is expected to produce 3.8 million tons of LNG each year. The two facilities would double Indonesia’s LNG production capacity to 33.1 million tons each year by 2027. The future for LNG within Indonesia is bright and new projects are moving at an exciting speed.

SKK Migas have stated the discovery of a giant gas reserve at the Sakakemang Block in South Sumatra has brought “added optimism” to Indonesia’s goal of becoming a leading gas producer. Spanish operator Repsol is moving ahead with plans to exploit the multi-trillion cubic feet gas reserve and the intention is to bring a stream to the Kali Berau Dalam-2X as early as 2022. The discovery of this gas reserve is one of the most relevant discoveries over the last two decades in Indonesia and these new projects will bring huge investment and jobs to the region.

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by Harry Topham