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Why is Indonesia unable to absorb 18 cargoes in 2014?

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27 May 2014

Why is Indonesia unable to absorb 18 cargoes in 2014?

Report summary

In recent articles, SKK Migas has mentioned that 18 additional cargoes will be available from Bontang but the domestic market will not be able to utilise these volumes based on infrastructure constraints.  Our analysis shows that this is indeed the case for 2014 as committed volumes are already sufficient to meet demand from the Nusantara regasification terminal and there is only an additional requirement for 8 more cargoes for H2 2014.

Table of contents

  • Indonesia LNG demand is limited in 2014-2015
  • Nusantara regasification terminal does not require additional cargoes for 2014
  • PGN is negotiating volumes from Tangguh for its Lampung terminal
  • Arun regasification terminal will have a slow ramp up in 2015

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