According to Yahoo! Asia News
JAKARTA, Aug 28 (Reuters) – Indonesia is considering giving a higher gas split of up to 49 percent to British energy explorer Premier Oil to supply gas to power plants and industries on Batam island, Mines and Energy Minister Purnomo Yusgiantoro said on Monday.
Premier has found about 500 billion cubic feet of gas reserves in West Natuna block A and Indonesia wants the gas to be supplied to Batam island, near Singapore, for cheaper energy.
Indonesia is the world’s top liquefied natural gas (LNG) exporter but has been struggling to meet export commitments due to declining gas output being diverted to the domestic market.
- The article misrepresented that the declining gas output is due to diversion of gas supply to meet indonesia’s own domestic market.
The fact is that Indonesia’s gas production had been declining faster then expected thus needed to curb exports and use the remaining for their own domestic use instead of exporting more to other countries.
Oh, Singapore depends on Indonesia and Malaysia Piped Natural Gas (PNG) for 80% of our electricity generation as of now until the Liquefied Natural Gas (LNG) starts shipping to the new LNG terminal that is scheduled to be completed by 2012.
The LNG market by then should be very saturated and no longer can get any fixed priced long term contracts but on prices that depends on market forces. So we will be in direct competition with CHINA, Mexico, Tokyo, USA, India, and many more by 2012. Let’s hope that we are prepared by then! ^_^
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