As an archipelagic nation, Indonesia faces several logistical challenges around securing adequate electricity supply.
Power cuts pose a problem, and 2% of the country – predominantly in remote areas – does not have access to any electricity.
But small scale LNG is ideally suited for this island nation, particularly for reaching areas where there is no existing pipeline infrastructure. LNG can also provide an alternative to the expensive imported diesel and LPG that many industrial and residential areas rely on.
What’s the scale of LNG demand in Indonesia? And what will help to unlock this demand? Asti Nuraini Asra, Principal Analyst for Gas and LNG research, discusses the size of the opportunity.
Asti Nuraini Asra thinks small scale LNG demand has the potential to reach 2.5 mmtpa by 2040. And more demand will be unlocked in the industrial sector, once the right infrastructure is in place.
Indonesia in focus
Want to understand Indonesia’s energy market fundamentals? Earlier this year, our team presented a series of reports on Indonesia-focused issues.
Access the report for more on:
- How is small-scale LNG progressing in Indonesia?
- What could IMO mean for oil and LNG pricing?
- What is the outlook for Indonesia's E&P sector?
- What is the future of transportation demand in Indonesia?