Deputy General Chairman of the Indonesian Chamber of Commerce and Industry for Backward Regions Natsir Mansyur said around US$8 billion is needed to build Liquefied Natural Gas (LNG) receiving terminals in all Indonesian 33 provinces. “That is a big investment but the terminals are to be built by the private sector, although we want the government commitment to support the plan by guaranteeing gas supply,” Natsir said Antara News on Wednesday (15/10/2014).

The Deputy General said Indonesia must not continue to depend on expensive oil for fuels while the country has gas reserves in abundance. “I think we should accelerate the program to convert oil fuel into gas fuel as we already years too late,” he added.

Natsir also said revenue orientation should be changed with benefit orientation in the use of oil to create multiplier effect on the economy. “LNG is very strategic in determining development of the country’s industry and it would increase added value in the country and it could function as economic growth driver,” he stated.

According to Natsir, Indonesia is a big gas producer but it needs more support in the form of LNG infrastructure that it would have bigger impact on the country’s economy especially in the regions. “LNG requirement in the country is forecast to rise to 10 million metric tons in 2014 or 50 percent of LNG for exports,” he said.

The government plans to build floating LNG receiving terminals in various areas in the country to support its program to increase the use of gas fuel to replace fuel oil. The terminals will receive gas in the form of LNG from LNG plants in the country and liquefy it before being distributed to consumers.

Meanwhile The Directorate General of Oil and Gas official website recorded the Government continues to encourage the development of conventional and unconventional oil and gas to enhance national energy security. Especially with regard to non-conventional oil and gas, in the near future will be the signing of five shale gas cooperation contract.

“We’ve got one (shale gas cooperation contract) managed by Pertamina. We’ll have more about five, “said Director General of Oil and Mineral Resources Ministry in the event of The 39th Annual Convention and Exhibition HAGI 2014 at the Paragon Hotel, Solo (14/10).

Director General of Oil and Gas said that the development of non-conventional oil and gas is one of the challenges for the Indonesian oil and gas industry, amid declining domestic oil production. The development of coal bed methane (CBM) and shale gas is expected to increase oil production to meet domestic demand continues to increase. Indonesia shale gas potential is estimated at 574 TCF, greater than coal bed methane (CBM), which reached 453.3 TCF and conventional gas at 153 TCF. Indonesia shale gas are found in Sumatra, Borneo, Java and Papua.

Source : Antara News & Directorate General of Oil and Gas official website