(EnergyAsia, March 21 2014, Friday) — Indonesia is fast losing its share in the global liquefied natural gas (LNG) market on account of rising domestic demand and growing supplies from other producers, said the US Energy Information Administration (EIA).
From a commanding position supplying more than a third of the world’s LNG in the 1990s, Indonesia has seen its share fall to just seven percent today. Since losing its global leadership to Qatar in 2006, it has also fallen behind Malaysia and Australia as the world’s fourth largest supplier.
The EIA estimates that between 1999 and 2013, Indonesia’s LNG exports had fallen by 40% to 818 billion cubic feet while global LNG demand had risen over 150%. The bulk of the country’s LNG exports went to Japan (37%), South Korea (35%), China (16%), and Taiwan (11%).
Indonesia currently has three liquefaction plants at Arun in Sumatra, Bontang in Kalimantan, and Tangguh in Papua with a total annual capacity of 1.5 trillion cubic feet, according to IHS Global Insight.
It is developing two new plants at Donggi-Senoro and Sengkang in Sulawesi. The Donggi-Senoro LNG plants received government approval only after the developers designated 30% of the output explicitly for domestic consumption, exceeding the DMO floor of 25%.