Wood Mackenzie: Indonesia to be Net Gas Importer by 2040

By Editorial Team 27/07/2023
Summary

The energy research and consulting firm Wood Mackenzie (WoodMac) estimates that Indonesia will become a net gas importer by 2040 as the country's domestic gas supply will be insufficient to meet the increasing demand from various sectors, including power plants and industrial raw materials.

Wood Mackenzie Research Director for Upstream and Carbon Management Andrew Harwood expressed concerns about the decline in gas production, which could potentially lead Indonesia to shift from being a gas exporter to a gas importer.

"Currently, domestic gas production is facing rising demand, which will shift Indonesia from an exporter to an importer of natural gas," Andrew Harwood said on Wednesday at the Indonesia Petroleum Association Convention and Exhibition 2023.

On the other hand, Director General of Oil and Gas Tutuka Ariadji dismissed WoodMac's projection. He remains optimistic about the domestic gas supply in 2040. “If the production target of 12 billion standard cubic feet per day [BSCFD] by 2030 is achieved, I’m sure that gas supply for 2040 is still sufficient,” he said.

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