Indonesia: Southeast Asia’s LNG wild card [Gas in Transition]

Indonesia: Southeast Asia’s LNG wild card [Gas in Transition]

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Natural Gas News
Indonesia: Southeast Asia’s LNG wild card [Gas in Transition]

Summary

Given low growth in renewables, plans to scale back coal-fired power generation and limited prospects for major increases in domestic gas supply, Indonesia could end up as a net LNG importer. [Gas in Transition, Volume 3, Issue 5] by: Martin Daniel

Indonesia is the least predictable member of the Association of Southeast Asian Nations (ASEAN) in terms of its involvement in the global LNG market (see figure 1). Most members have a well-established role -- exporters with limited or no growth prospects, or current or future importers with, in most cases, relatively modest demand potential. Brunei, for example, saw its exports decline from 9.6bn m3 in 2011 to 7.6bn m3 in 2021, according to the BP Statistical Review of World Energy. Malaysian exports were more or less level over the same period, rising from 33.2bn m3 to 33.5bn m3. This stability reflects the fact that the LNG industries of both countries are based on mature gas developments and long-term contracts. Among the importers, Singapore has an importance beyond the amount of LNG it consumes because of its pivotal role in the regional LNG market. But LNG imports that reached 5.7bn m3 in 2020, falling to 5.1bn m3 in 2021, are unlikely to grow at a substantial pace. Meanwhile, fore...