Indonesia’s LNG Imports Continue Rising

Indonesia’s LNG imports are expected to be resilient against the coronavirus-led global economic downturn, says Wood Mackenzie. The country’s 2H20 LNG imports could hit 3.1 million t, a 1.2 million t or 63% increase y/y. Despite a slow first quarter due to post-holiday season, Indonesia’s LNG consumption has continued to rise from 2Q20 at 1.1 million t and appears to be well-cushioned against the impact of COVID-19. Reduced pipeline gas and low spot prices were likely to have supported Indonesia’s LNG demand.

The government has also recently introduced a set of regulations aimed at lowering domestic gas price to US$6/million Btu for seven key industries and the electricity sector. It is hoped that the measures would improve industrial competitiveness, especially for exports, and create multiplier effects. Speaking at Wood Mackenzie’s Indonesia Virtual Energy Forum, principal analyst Lucy Cullen said: “The story of Indonesia is consistent with Asia’s outlook at large. The region’s LNG imports will reach 250 million t this year, a 2.5% increase compared to last year, and could hit 315 million t in 2025. By 2040, Asia will account for 40% of global LNG consumption with Indonesia and its Southeast Asian neighbours being key engines of this growth…

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