Wed 28 Oct 2015 by Karen Thomas
Indonesia is stepping up its search for foreign investment, both to unlock its domestic gas reserves and to create the infrastructure it needs to supply LNG to its many outlying islands.
Officials told a Spotlight on Indonesia gathering today at Gastech in Singapore that although the country is sitting on vast gas reserves, it needs investors and construction partners to supply gas for power generation, including to its eastern regions that cannot be served by pipeline. Here, Indonesia is looking for solutions from project partners to install floating storage and regasification units (FSRUs) and from shipping companies and construction firms to develop LNG-import infrastructure and services to meet projected demand for gas to 2030.
“By 2019, Indonesia will need to import LNG,” an official said. “Our production will decline and we will either need to tap new reserves or to import LNG, and that means building up that infrastructure, including FSRUs.”
Indonesian president Joko Widodo this week visited the US, where he is said to have signed bilateral trade agreements worth more than US$20 billion. They include an LNG-supply contract between Corpus Christie LNG and Indonesian energy giant Pertamina to deliver US$13 billion worth of LNG to Lampung FSRU, which supplies gas to eastern Indonesia.
Indonesia’s Saka Energi also signed a US$175 million deal with US-based Fasken Eagle Ford to develop shale gas.