Indonesia is considering imposing new limits on the export of liquified natural gas (LNG), reported Bloomberg.
According to Indonesia’s Deputy Coordinating Minister for Maritime Sovereignty and Energy Jodi Mahardi, the country seeks to balance local consumption with export obligations to secure a sufficient domestic gas supply.
“We believe that this policy will have a positive impact in meeting domestic energy needs, encouraging domestic industry growth, and maintaining existing export commitments,” Mahardi was quoted by the publication as saying.
The proposed policies do “not intend to reduce or stop gas exports as a whole,” he added.
Ship-tracking data indicates that Indonesia was the sixth-largest LNG exporter in the world in 2022.
Supply chain bottlenecks and a post-pandemic industrial resurgence led to a worldwide fuel supply crunch last year, and the nation has been striving to prioritise gas for its domestic market to support its economic growth.
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In a media briefing, the country’s Coordinating Investment and Maritime Affairs Minister Luhut Pandjaitan said the government could ban new LNG export contracts or renewals of existing agreements to meet the domestic demand, the publication said, citing a report by Jakarta Post.
Existing contracts would not be affected, and a report is being produced for President Joko Widodo, Pandjaitan said.
According to Bloomberg’s data, nearly ten million tonnes per year of LNG contracts with Indonesian suppliers will expire by 2030. It accounts for approximately 50% of the country’s export capacity.