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Indonesia Need to Invest US$70-80 billion for Gas Infrastructure

by Sebastianus Epifany Tuesday, February 7, 2017 - 17:54

Indonesia needs investments of US$ 70-80 billion dollars for the overall infrastructure gas development to meet domestic energy needs which continue to grow around 4-5% per year. Apart from supporting efforts to fulfil the domestic gas, the new investment also means creating thousands of jobs, fueling the growth of the industry, and also stimulate the growth of Indonesia's GDP.

Natural gas is expected to have an important role to the future of Indonesian economy due to the growth in demand for gas from power plants of PT PLN (Persero) for a total capacity of about 14 GW and Refinery Development Master Plan project at four refineries, as well as two New Grass Root Refinery which owned by Pertamina.

"These projects make the gas demand is increasing and the next challenge is an effort that must be done to fulfil the request from upstream to downstream. Indonesia needs new investment to explore and develop new sources of gas and to build gas infrastructure which will deliver it to the end consumer," said Chairman of Gas Society and also acting as President Director Pertamina Yenni in the opening of the International Indonesia Gas Conference & Exhibition 2017, as reported from (02/07/2017).

Yenni explains that the gas infrastructure investments are long-term investments for 30 years and to become an investment destination, Indonesia must compete with other countries. "Therefore, we need good coordination of all stakeholders, incentives, competitive prices and ensure the good of domestic investment climate," he explained.

Pertamina as the pioneers of gas and LNG business on a global scale has made efforts to develop gas infrastructure in the entire gas business chain. Pertamina continuously develops upstream gas, setting the Mahakam block revitalization plan, build FSRU (Floating Storage Regasification Unit), developed a gas pipeline, and has secured LNG supply from within and outside the country. Pertamina is ready to become an agent to stimulate the growth of gas infrastructure and gas consumption in Indonesia.

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