Indonesia's expanding small-scale LNG programme: 2016 update

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27 September 2016

Indonesia's expanding small-scale LNG programme: 2016 update

Report summary

Indonesia's small scale LNG programme has expanded in scope. It now covers additional regions of Indonesia and seeks to supply LNG to approximately 87 gas fired power plants. The maximum potential LNG demand from the programme is 3 million tonnes a year. On the one hand, this highly complex programme seems to have the odds stacked against it. The fall in oil prices has reduced the imperative to switch away from diesel generation. On the other hand, LNG prices and small scale LNG capex have also declined. Meanwhile, a handful of small scale power plants and LNG projects have already been built in Indonesia. Is now the time for small scale LNG to come of age in Indonesia? In this slide pack we assess the project scope, current status, demand impact, economics and potential for further development.

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