Indonesia’s LNG exports are expected to drop by a quarter in 2015 as the country decided not to extend export contracts set to expire.
According to Indonesia’s oil and gas upstream regulator, SKK Migas head, Amien Sunaryadi, the country will be able to ship 200 LNG cargoes overseas, compared to the 267 cargoes it sent in 2014, reports Bloomberg.
Indonesia’s gas demand rises with the increased use of gas for energy production. It is estimated that the domestic market will rise to 23.4 tcf from 22.7 tcf in 2014.
As Sunaryadi said, Indonesia’s consumption will grow which will increase the allocation for domestic use and cut allocation for exports. Contracts that expire this year will not be extended by SKK Migas, added Sunaryadi.
The regulator plans to also terminate exploration contracts for 41 block with companies that have not met the performance targets, have not found oil or gas or the companies with expiring contracts.
LNG World News Staff; Image: Badak LNG