Both on-and offshore LNG solutions applicable for Indonesia

Paul Lim's picture
Paul Lim, Editor, The Petrochemical Standard
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Both onshore and offshore solutions are ideal if Indonesia wants to develop small and mid-scale liquefied natural gas projects, a Japanese speaker told TPS May 15 on the sidelines of the APAC Small and Mid-Scale LNG conference in Singapore.

"We are especially interested in the Indonesia market due to the many opportunities there."

"Indonesia could require diverse solutions due to the varying levels of infrastructure development and geographical differences," he said.

However, low oil prices have caused a temporary lull in demand for small and mid-scale LNG projects in Indonesia.

"Buyers are staying away this year due to low crude oil prices."

"But as crude oil prices continue to firm, especially moving into next year, demand for small and mid-scale LNG projects should pick up again," the speaker said.

Indonesia's gas suppliers also expect to move more LNG supplies to regional countries within the next five years, they said.

"We have already issued tenders to procure new vessels to serve new demand which may be seen soon."

Southeast Asia also holds numerous opportunities for 'milk runs', a speaker said.

"Buyers could bring in bigger-sized vessels such as QMax vessels into any of the envisioned Asian gas trading hubs, and then start distributing regionally to countries which face demand for smaller lots of LNG parcels in the form of 'milk runs'."

According to the United States' Energy Information Administration, Indonesia was the fourth-largest gas exporter in 2013, after Qatar, Malaysia and Australia.

It is also facing increasing domestic demand for natural gas as its economy and population continues growing.

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