Indonesia is preparing to strengthen energy security by reducing its dependence on energy supplies from abroad, with liquefied natural gas (LNG) becoming a key focus. BP BUMN and Danantara Indonesia are encouraging PT Pertamina (Persero) to increase domestic LNG production and supply capacity as national demand is expected to grow in the coming years.

Pertamina presented its LNG demand projections during a meeting at Wisma Danantara in Jakarta on Thursday (10/9).

The company expects LNG to become increasingly dominant in the national gas supply after 2025.

Dony Oskaria, Head of BP BUMN and COO of Danantara Indonesia, said the increase in LNG demand must be matched by stronger domestic supply.

“What's most important is that there is progress. This means that if our needs are 50 percent, we can already supply it from within the country,” Dony said, as quoted from BP BUMN's official Instagram account.

LNG Could Account for More Than 50% of Gas Supply by 2029

Pertamina projects that LNG will account for more than 50 percent of the overall gas supply by 2029.

The projected increase in demand makes domestic LNG production and supply capacity increasingly important to meet national gas needs.

The BP BUMN and Danantara push is aimed at ensuring that the growing requirement for LNG can be supported by supplies produced within Indonesia.

Pertamina Develops Gas Networks and CNG

Pertamina is also developing gas networks, known as jargas, and compressed natural gas (CNG) as part of efforts to strengthen domestic gas supplies.

One of the schemes being developed through a CNG mother station is targeted to distribute gas to around 12,000 households.

The development of jargas and CNG is also intended to bring natural gas closer to communities while supporting efforts to reduce the use of LPG.

Jargas and CNG Target LPG Import Dependence

Dony said the development of jargas and CNG could significantly reduce Indonesia's dependence on imported LPG.

“This can significantly reduce dependence. The combination of gas networks and CNG is extraordinary. The impact on us is significant, especially in reducing imports and our dependence on LPG,” Dony said.

The strategy from BP BUMN and Danantara covers both industrial needs and household consumers.

Stronger domestic LNG production, along with the expansion of jargas and CNG, is expected to create a more integrated gas supply chain from production sources to end users.

If the targets are achieved, the measures are expected to support energy availability while reducing the need for imports.

PHOTO: PERTAMINA INTERNATIONAL SHIPPING

This article was created with AI assistance.

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