Major milestones are expected to take place within Indonesia’s natural gas and LNG industry including LNG imports and more domestic cargo supply starting 2017. The commitment to deliver electricity to every corner of Indonesia’s populous archipelago has made LNG one of the most exciting growth prospects domestically in 2016 and beyond. The government’s aim to boost power generation by 35GW will see LNG play a key and strategic role.
Just recently, a floating regasification unit (FRU) and floating storage unit (FSU) arrived in Bali – paving the way for a real and realistic era of floating small-scale LNG regasification options for stakeholders. This facility will cement continued interest for stakeholders wanting to distribute LNG in smaller parcels, as marine fuel and for other small-scale uses, especially to remote areas within Indonesia. The business of LNG is never short term. The impact of low prices will create opportunities for companies and players who are in the downstream LNG value chain.
LNG-import infrastructures – both onshore and offshore – together with small scale LNG facilities and downstream distribution channels such as small LNG ships, bunkering and LNG trucking will continue to play a key role in the burgeoning LNG industry. Small-scale LNG – or Mini LNG in some cases – infrastructures will ease the distribution of LNG across islands and enable direct penetration into undeveloped markets and locations..