JAKARTA (RambuEnergy.com) – Indonesia currently is a producer and gas exporting country, however, this may not last for much longer. The natural gas reserves could run out as early as in 2060, economists warned.
“The gas is used as a source of energy, used in the transportation, industry and many others. However, it has time limits. Given the current usage, the gas would run out in 2060,” economist and former minister under late Soeharto era Emil Salim said during a public discussion held in Jakarta by ‘What You Pay Indonesia’ on Tuesday (Jan. 15).
An annual basis, the consumption of domestic gas increase by an average of 24% per annum, he said.
He said the government should undertake preparatory steps before the natural gas runs out. One way to do this s by managing the gas price well, in addition to conducting explorations. At present, the gas price is different among regions.
Indonesia has a number of gas resources area that is yet to be exploited or yet to enter producing stages such as the Masela Block in the Arafura Sea, Genting in West Papua and the Indonesia Deepwater Development (IDD) project in Makassar Strait.
These projects have made slow progress, showing lack of determination on part of the government to push forward these projects.
Given the slow progress of these projects, Indonesia is estimated to begin importing natural gas in the next few years. Pertamina, a state-owned energy company has anticipated this possibility by entering preliminary deals with overseas natural gas producers to import gas. (*)
Written by Staff Writer, edited by Roffie Kurniawan (Email: firstname.lastname@example.org)