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Big Potential of LNG Development in Indonesia

Muhammad Naufal Majid

Chemistry Education Department, Yogyakarta State University
e-mail : muhammadnaufal.2019@student.uny.ac.id

Abstract
Liquified Natural Gas (LNG), made from propane and butane, is a natural gas that have been
created for purifying heavy hidrocarbon. This natural gas can be used as a fuel in electric steam power
plant. According to ESDM, our natural gas reserve is quite big because in 2012 we have 47.35 TSCF
(Trillion Square Cubic Feet). Due to this fact, LNG may come up as a substituent of diesel and
petroleum oil who still has a huge reserve in Indonesia.
In 2015, Indonesia has 4 big sources of natural gas reserve, they are in Arun (6,8 MTPA), Bontang
(22,6 MTPA), Tangguh in West Papua (7,6 MTPA) dan Donggi Senoro in Central Sulawesi (2 MTPA).

Keywords : LNG, Big potential

Introduction

Energy is one of the most important
needs in human life. Human life can’t be
separated from the need for energy for the
continuity of human life, starting from the
needs of industry, transportation,
household needs. Talking about energy is
inseparable from fossil energy (oil and
gas), which until now has been a major
sources in energy needs in the world
include Indonesia. The demand for energy,
especially diesel and petroleum oil in
Indonesia shows an inreasing trend in spite
of the fact that its reserve decreases yearly.
With this increasing demand, Indonesia
still have to import the oil. Realizing the
high dependence on imported oil, it is urge
that Indonesia study about LNG as a
cheaper, safer and environmentally
friendly energy source to replace both
diesel and petroleum oil.
Potentials
According to Ministry of Energy and
Mineral Resources, in January 2018,
natural gas reserve in Indonesia reachs
135.55 TSCF. The existance of natural gas
reserve is really important for compotition
national energy. In 2025, our government
has a target to place natural gas as 20
percent of total national compotition
energy and it will be increased in 2050 by
24 percent. Nowadays, LNG is used in
domestic industry and fertilized factory.
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LNG roles as the substitute of rapidly-
decreasing oil product in Indonesia.
Petroleum oil reserve in January 2018 is
135,55 TSCF. This number shows a big
to reduction than previous year with the
number 142,72 TSCF.
The need of energy supplies in
Indonesia, especially on diesel demand is
increasing every year. However, this
increase could not be fulfilled by national
oil based energy supply due to the
decrease of oil production and there has
not been significant increase in term of oil
fractionation plants. As a consequence,
diesel import could not be avoided
resulting an additional burden in nation
budgeting. In order to solve this problem,
LNG might be an alternative. Thus, diesel
import can be eliminated; furthermore,
domestic industries can be more
competitive. Although Indonesia is one of
the major LNG producers, most of the
LNG production is exported to Japan,
Korea, and China, but LNG has not been
utilized by the society as well as domestic
industries.
According to SKK Migas, lifting LNG
in 2017 shows increasing trend. Based on
the cost saving analysis, the use of dual
fuel (diesel and LNG) in a machine could
possibly save 20-25% in comparison to hat
machine using single fuel (diesel).
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The need for LNG is expected to be development as a main energy source,

increased with the work of the PLN power replacing diesel and petroleum.
plants included in the 35,000 Megawatt
Conclusion
electricity project. Natural gas production
from Kalimantan, for example. Most of the Seeing the huge potentials of LNG
natural gas production from this island is development in Indonesia , the government
processed into LNG which is distributed to should get benefit from the cooperation
meet domestic and export needs. with other countries. LNG development
must be done carefully and
In March 2015, there was a LNG
comprehensively in order to process this
wokshop where Indonesia,Japan,and US
new energy source that becomes a benefit
commited to create a project about
for people in Indonesia.
maximalizing the LNG potentials. Japan
also wants to share about the using of
LNG for train fuel. This LNG workshop is
held for fullfiling LNG demand.
Indonesia,US,and Japan have commited to
contribute in technology utilizing. This
workhsop showed that there was a support
from world organization for maintaining
energy supply and promoting transparent
energy market that follows the regulations.
In this workshop, the export-import market
development also was discussed.

In February 2019,10 areas have been

identified by SKK Migas as new sources
of natural gas, some of them are Warim
Papua,Northern Papua, Buton Offshore,
Kutai Offshore, Java-Makassar Strait,
Tarakan Offshore, South Sumatera,
Central Sumatra, North Sumatera,and
Banyuasin. This new sources of natural
gas become a new hope of LNG