Gas demand in Indonesia and the challenges

General :

In Indonesia, the use of gas for domestic demand continues to increase. However, entrepreneurs among users of gas worry about the supply deficit will again occur, triggering collapse of a number of strategic sectors. Actions taken to strengthen the national security of supply of natural gas and  to help the distribution of gas in Indonesia are given as the following.

Gas demand :

Based on data from August 2013, to support domestic natural gas needs will be 3,530 MMSCFD or 3,650 BBTUD. Details of allocation, 18% for fertilizers, 35% of the electricity sector, and 48 percent of the industrial sector. As for exports amounted to 3,216 MMSCFD or 3,325 BBTUD. In other words, the composition for the domestic and export respectively 52% and 48%. (More detail , please to check

Director of Pertamina Gas (Pertagas) Hari Karyuliarto said (05/Dec/2013), domestic gas demand is expected to increase by about 3.9%, reaching 7.2 bscfd in 2025, it is mainly driven by the need for gas-fired power plants and industrial sectors in Java and Sumatra.  (More detail , please to check

Chairman of the Natural Gas Industry User Forum or Forum Pengguna Industri Gas Bumi (FPIGB)  Achmad Safiun said (Bisnis Indonesia, 9-Jan-2014) the demand of industrial gases, specialty manufactur sector in 2013 is 1200 MMSCFD. The industrial needs in year 2014 is predicted to increase by 10% compared with consumption in 2013 to 1320 MMSCFD in line with the growth of new industries in the country.  (More detail , please to check Bisnis Indonesia).

RI Gas Production and export statistic

Fig-1 Indonesia Gas Production and Export Statistics (2004 – 2012)

The challenges :

However, entrepreneurs among users of gas worry about the supply deficit will again occur, triggering collapse of a number of strategic sectors.

  • The construction of a gas pipelines that have not been completed.
    Construction of gas pipeline Gresik-Semarang and Semarang-Cirebon still on process.
    Promised gas pipeline to be operational in 2014 this is a gas pipeline from Arun to Belawan by Pertagas.
  • As the growth of new industries in Indonesia, Head of Unit – Glass Sheets and Safety Association or Asosiasi Kaca Lembaran dan Pengaman (AKLP) Yustinus Gunawan said (8-Jan-2014), many glass investors , both locally and overseas to be waiting for a stable supply of domestic gas.
  • At the end of November 2013 it was reported that under normal conditions in the natural gas needs of the North Sumatra province reached 40 million MMSCFD per day, with the needs of industry reached 12 million MMSCFD. Meanwhile, the actual supply of approximately 9 million MMSCFD, so there is a huge imbalance between demand and production. These conditions hit Sumatra industry resulted in several industrial gas users were stopped their operations.

Positive actions taken :

To strengthen the national security of supply of natural gas and  to help the distribution of gas in Indonesia, actions taken are given as the following :

  • Ruby gas field, Block Sebuku operated affiliate of Mubadala Petroleum in Indonesia began supplying gas demand in the domestic market. Field which began production on October 27, 2013 it supplied 85 billion British thermal units per day (BBTUD) to PT Pupuk Kalimantan Timur (fertilizer plant) to support the National Food Security Programme in Indonesia.  Gas supply from Ruby Field is a real form of government support to continue to commit to allocate gas for domestic purposes and empower the national fertilizer industry.
  • The development plan (PoD I) of 4 fields in deep sea (deep water) have been approved by the Government and became the mainstay of production in the future. The four fields are given as below:
    1. North Jambu Aye field,
    2. Gendalo field and Gehem (IDD Project),
    3. Abadi field, and
    4. Jangkrik field in Muara Bakau block.
  • PT Perusahaan Gas Negara Tbk (PGN) has the commitment and consistency in the development and utilization of natural gas infrastructure in Indonesia. In the infrastructure sector, during 2013 PGN has built and operates the Mobile Refueling Unit (MRU), completing the construction of Floating Storage Regasification Unit (FSRU) in Lampung, and construction of Cikande-Bitung Gas Pipeline along the 30 km.
  • PGN through its subsidiary Energy Saka Indonesia (SEI) also conducted a series of corporate actions by buying oil and gas blocks of foreign companies. For example, acquiring a 30 percent participating interest in the PSC Bangkanai (Borneo or Kalimantan) worth 27 million U.S. dollars. PGN also buy a 20 percent participating interest in the PSC Ketapang (Madura) worth 71 million U.S. dollars. Saka Energy returned 25 percent acquiring participating interest in the PSC Pangkah (Madura) amounted to 265 million U.S. dollars.
  • The operation of Benggala-1 well with production of 2.6 mmscfd of gas per day in the village of Tanjung Jati, District Binjai, Langkat to overcome gas crisis in North Sumatra.
  • Terminal of liquefied petroleum gas (LPG) belongs to a group Bosowa ready to meet the needs of LPG in eastern Indonesia, especially South Sulawesi , Manado, Gorontalo, Kendari and small islands around Sulawesi.
  • Etc.


BBTUD : Billion British Thermal Unit per Day
MMSCFD : Million Standard Cubic Feet per Day


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