Regulatory changes continue to influence Indonesia's gas market landscape this year. A merger between PERTAMINA and PGN looks imminent, and seems to be an initial step toward the formation of a national energy holding company. The government released a new presidential regulation to limit piped gas prices for selective industrial buyers. Abadi LNG is likely to be delayed further as the government rejected INPEX's proposed FLNG development concept, preferring a land-based terminal instead. No significant increase is expected in the gas and LNG production over the medium term, amid the decline in existing supply, project delays and limited new discoveries. The midstream and downstream sectors look more buoyant, as gas pipeline infrastructure is expanded, more regas terminals are built and new gas-fired power plants are commissioned. This will result in a strong gas and LNG demand growth, although competition from other fuels particularly coal will also come into play.