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Rising Domestic Use May Prompt Indonesia LNG Exports to Fall

Growing domestic requirement coupled with a slowing overseas demand may prompt exports of Indonesia's liquefied natural gas ( LNG ) to fall marginally in 2012.

"Our LNG exports in 2012 may fall slightly below the 2011 export commitment of 362 cargoes," Gde Pradnyana, spokesman of BPMigas, told Bloomberg News on Thursday. The government official, however, assured exports will still be over 300 total worth of cargoes.

Indonesia exports its LNG to Japan and South Korea, among other nations.

Domestic demand for the chilled LNG rose to account for about 58 per cent of total LNG output this year, Pradnyana noted.

The country expects to pump 3.08 trillion cubic feet in 2011, data from BPMigas showed.

In 2010, Indonesia's LNG exports totaled 427 shipments.

Declining requirement from the U.S. spurred by the growing natural gas production from shale formations will also create a dent in Indonesia's overall LNG exports next year, Pradnyana said.

Earlier, Indonesia announced that some 15 new oil and gas fields will go online in 2012, with total expected production at 1.15 million standard cubic feet per day (mmscfd) and 32,200 barrels of oil per day (bpd).

Indonesia's daily oil output may rise to as much as 950,000 barrels in 2012 from 903,441 barrels this year because of additional production from the new fields.

Read more:

Indonesia to Have 15 New Oil And Gas Projects Online in 2012

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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