Indonesia to limit gas exports to meet local demand
Sunday, 7 February 2010
JAKARTA, Feb 06 (Commodity Online): Indonesia said it is planning to limit liquefied natural gas exports to secure adequate gas supplies for domestic industrial needs.
According to country's Energy Ministry, a new presidential instruction was being drafted to regulate LNG exports.
For years, local companies requiring gas as a raw material in their production process, such as ceramics makers, fertiliser firms and state power company PLN, have complained about the lack of a steady supply.
The Ministry said one contract would be immediately affected if the policy became effective this year. A contract for the supply of gas to Japanese buyers from the Mahakam Block in East Kalimantan, which is operated by French oil and gas firm Total E&P Indonesia, expires in 2010.
Indonesia had earlier approved in principle a contract extension to 2020, but as yet there has been no final Decemberision.
According to country's Energy Ministry, a new presidential instruction was being drafted to regulate LNG exports.
For years, local companies requiring gas as a raw material in their production process, such as ceramics makers, fertiliser firms and state power company PLN, have complained about the lack of a steady supply.
The Ministry said one contract would be immediately affected if the policy became effective this year. A contract for the supply of gas to Japanese buyers from the Mahakam Block in East Kalimantan, which is operated by French oil and gas firm Total E&P Indonesia, expires in 2010.
Indonesia had earlier approved in principle a contract extension to 2020, but as yet there has been no final Decemberision.