SEMINYAK, BALI (RambuEnergy.com) – The Asian LNG market is still promising in the medium to long run, partly due to demand increasing from Southeast and Southwest Asia, including Indonesia, analysts say.
Over the past one year or so, the short-term market price of LNG has been relatively low compared to few years back due to increasing supply of the LNG, including from Australia.
“I think we have to look at beyond current moment,” Matthew Doman, Director for External Affairs of Australian Petroleum Production & Exploration Association (APPEA) Limited, said on the sideline of the 2nd IndoPacific LNG Summit in Bali.
“What we’ll see is greater supply and greater demand for LNG. We are seeing an increasing role of LNG,” Doman, who is also Vice Chairman of the International Gas Union’s Strategic Communications Taskforce, said.
Umehara Kaoru, divisional operating officer energy business division, Asia Pacific business Unit of Mitsui & CO, Ltd, sees the LNG demand to pick up again in the medium term.
“We believe beyond 2025 onwards, there is going to be a pick-up of demand from Southwest Asia, including Bangladesh and Pakistan,” Umehara Kaoru said on the sideline of the IndoPacific LNG Summit 2020 in Bali on Tuesday (03/03).
In term of price, he said, it moves in cycle depending on the supply and demand. At present, the global LNG price is relatively lower compared to few years back due to “temporary imbalance” between supply and demand.
In Indonesia alone, the demand for gas is projected to continue to rise, supported by the development of various gas infrastructure, increasing demand from power plants as well as the city gas program.
The Head of Special Task Force for Upstream Oil and Gas Business (SKK Migas) Dwi Soetjipto said when delivering his presentation at the conference that the demand for LNG in Indonesia is projected to double to 11,728 million standard cubic feet per day (mmscfd) or 21.8% of the country’s energy mix in 2030 from 6,557 mmscfd or 21.2% of the national energy mix in 2020.
The demand for gas is projected to further increase to 26,112 mmscfd in 2050 or 24% of the national energy mix, he added.
“Percentage wise, the share of gas in the national energy mix increased slightly, however, in term of volume, it increased significantly,” Soetjipto said.
“This is a good opportunity for industry players,” he added.
The two-days conference was opened by Secretary General of the Energy and Mineral Resources Ministry, Ego Syahrial, and attended by regulators, Bali provincial government representatives, LNG industry players and analysts. (*)