JAKARTA (Yosefardi) – The government of Indonesia plans ban export of gas, as to prioritize domestic gas supply for manufacture sector. The Ministry of Industry is now drafting the government regulation (PP) to ban gas export.
Currently the industry sector needs gas supply of 1,200 million cubic feet per day (mmscfd), excluding gas supply to fertilizer producers. But the gas supply only reaches 700 mmscfd.
The government opted to build gas transportation (pipe) facility from Sumatra to Singapore, instead of realizing the plan to build gas pipeline connecting Kepodang field to Semarang. The government has also not completed yet the construction of trans-Java gas pipeline facility.
Meanwhile, the manufacture industry is expected to grow by 6.8% this year, after growing 6.5% in 2013. The gas prices for industry sector now reach US$10 per mmbtu.
In contrast, the Upstream Oil & Gas Regulatory Body (SKK Migas) said 75% of gas production in deepwater area is agreed to be allocated for export. The gas production (of Indonesia Deepwater Development/IDD) totals 1,270 mmscfd.