Christina Desy, Kartini L. Makmur

Over the past few years, the level of domestic use of liquid natural gas (LNG) has been less than expected. Recent data shows that only 94.74 percent of a total allocation of LNG from 38 LNG shipments was used last year.
Rudianto Rimbono, Head of Public Relations Division at Special Works Unit for Upstream Oil and Gas Activities (SKK Migas), said that this outcome was mainly caused by a lack of infrastructure and the inefficiency of Floating Storage and Regasification Units (FSRU)—facilities placed on ships to reprocess LNG. In this regard, Mr. Rimbono pointed to the example of the FSRU in Lampung which only utilized three out of five target shipments.
Despite these circumstances, the government and SKK Migas have decided to increase this year’s LNG utilization target by allocating more LNG for the domestic market and adding the remaining LNG from last year. According to Mr. Rimbono, this optimistic view is based on an expectation that facilities in Arun will start operating this year.
“Therefore, the government must immediately improve infrastructure as well as the performance of existing facilities to increase domestic LNG absorption,” urged Mr. Rimbono, last Tuesday.
Supporting Mr. Rimbono, Marwan Batubara, an oil and gas expert, said that the low utilization of LNG will lead to a loss of economic potential and that state revenue may be harmed if this situation is allowed to continue.
Despite his reservations, Mr. Batubara welcomed the government’s optimistic target which still prioritizes the domestic market. To this extent, Mr. Batubara expects the government to restrict LNG exports, unless going forward domestic market absorption remains sub-optimal.
“Even so, LNG exports must be tightly monitored,” commented Mr. Batubara.
Sharing these views is Kurtubi, a lawmaker of Commission VII at the House of Representatives, who also stresses the importance of having better infrastructure for gas utilization. Mr. Kurtubi is encouraging the government to motivate relevant stakeholders to participate in the realization of more infrastructure for gas utilization.
(hot/kc)