Indonesia seeks ways to rebuild LNG industry and develop domestic gas

Monday, 07 November 2011 14:55

Alex Cull, Partner, Norton Rose Australia, Ashley Wright, Partner, Norton Rose (Asia) LLP, and Alistair Dunstan, Associate, Norton Rose (Asia) LLP

Foreign investment into Indonesia's hydrocarbons sector is badly needed. The Indonesian Government is working hard to encourage a switch in domestic use from polluting kerosene, oil and coal to cleaner natural gas.

But the domestic gas market is facing critical levels in supply and a decade-long lack of investment in local gas infrastructure.

LNG for export is also suffering with dwindling gas supplies to its two main LNG liquefaction terminals at Arun and Bontang coupled with substantial export commitments.


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