Indonesia's state utility PLN sees gas demand doubling by 2040
Corrects full name of PLN to Perusahaan Listrik Negara, not Perusahaan Gas Negara, in paragraph 2
Gas demand seen rising to at least 2.3 trillion BTU in 2040
LNG is seen making up larger portion of gas supply to PLN
PLN's LNG demand seen at 82-84 cargoes in 2024
By Fransiska Nangoy and Bernadette Christina
TANGERANG, Indonesia, May 15 (Reuters) -Indonesia's state power utility expects its natural gas demand to nearly double by 2040 as it aims to build 20 gigawatt (GW) of gas-fired power plants, a company official said on Wednesday, in the quest to reach net zero emissions by 2060.
Perusahaan ListrikNegara (PLN), which has pledged to stop expanding coal-fired capacity, is revising a long-term power supply plan to build 80 GW of new generation capacity, with a quarter to be powered by gas instead.
Its demand for gas, seen as a transitional fuel in the move to renewables from coal, is estimated at 1.2 trillion British thermal units (TBTU) this year, and could increase to 1.5 TBTU in 2027, as PLN converts diesel-fired power plants to LNG, said Rakhmad Dewanto, a director of PLN Energi Primer Indonesia.
Gas demand is expected to reach 2.3 TBTU in 2040, Rakhmad, tasked with making PLN's fuel purchases, told delegates at the Indonesia Petroleum Association conference.
"These are still conventional numbers, because we have potential upside coming from additional demand from smelters," he said, a prospect that could boost PLN's gas consumption to 3.4 TBTU in 2040.
Indonesia's smelting sector has expanded massively in recent years as investment poured into the nickel processing industry to meet surging global demand for batteries.
Coal is the dominant power source for its operations, but some companies are building gas-fired units instead. Much of that gas demand is expected to be met by liquefied natural gas (LNG), Rakhmad said, as supply from existing pipelines falls.
This year PLN's LNG consumption has surpassed gas supplied through pipes, Rakhmad said. LNG consumption in 2024 is seen at around 82 to 84 cargoes, up to 23% from last year as supply.
Out of the estimated required cargoes this year, 76 have been secured, he said, adding that PLN has requested import permits from the government.
"At least we need to secure the import quota first. If domestic supply is available, we will not need to import," he added.
In 2025, LNG demand by the utility firm expected to between 84 cargoes to 90 cargoes, he said.
Most of Indonesia's future gas supply is expected to come from its eastern region, while demand is centred in the west.
If LNG meets all the gas needs for the 20 GW of capacity by 2040, that could translate into 400 cargoes of LNG per year, Rakhmad said. That figure compares with Indonesia's current production of fewer than 200 LNG cargoes a year.
To meet future demand, the government is pushing for quick development of recent discoveries such as Italy's Eni ENI.MI in the Kutai basin and the United Arab Emirates' Mubadala Energy in the South Andaman block.
Consultancy Wood Mackenzie said Indonesia was expected to be a net importer of gas by 2040, though significant new discoveries could alter that scenario.
"But the current outlook clearly suggests legacy fields are declining and it may take time for some of these new developments," analyst Mangesh Patankar said.
Reporting by Fransiska Nangoy and Bernadette Christina; Editing by Florence Tan, Clarence Fernandez and Louise Heavens
Actifs liés
Dernières actualités
Avertissement : Les entités de XM Group proposent à notre plateforme de trading en ligne un service d'exécution uniquement, autorisant une personne à consulter et/ou à utiliser le contenu disponible sur ou via le site internet, qui n'a pas pour but de modifier ou d'élargir cette situation. De tels accès et utilisation sont toujours soumis aux : (i) Conditions générales ; (ii) Avertissements sur les risques et (iii) Avertissement complet. Un tel contenu n'est par conséquent fourni que pour information générale. En particulier, sachez que les contenus de notre plateforme de trading en ligne ne sont ni une sollicitation ni une offre de participation à toute transaction sur les marchés financiers. Le trading sur les marchés financiers implique un niveau significatif de risques pour votre capital.
Tout le matériel publié dans notre Centre de trading en ligne est destiné à des fins de formation / d'information uniquement et ne contient pas – et ne doit pas être considéré comme contenant – des conseils et recommandations en matière de finance, de fiscalité des investissements ou de trading, ou un enregistrement de nos prix de trading ou une offre, une sollicitation, une transaction à propos de tout instrument financier ou bien des promotions financières non sollicitées à votre égard.
Tout contenu tiers, de même que le contenu préparé par XM, tels que les opinions, actualités, études, analyses, prix, autres informations ou liens vers des sites tiers contenus sur ce site internet sont fournis "tels quels", comme commentaires généraux sur le marché et ne constituent pas des conseils en investissement. Dans la mesure où tout contenu est considéré comme de la recherche en investissement, vous devez noter et accepter que le contenu n'a pas été conçu ni préparé conformément aux exigences légales visant à promouvoir l'indépendance de la recherche en investissement et, en tant que tel, il serait considéré comme une communication marketing selon les lois et réglementations applicables. Veuillez vous assurer que vous avez lu et compris notre Avis sur la recherche en investissement non indépendante et notre avertissement sur les risques concernant les informations susdites, qui peuvent consultés ici.
