Jakarta—Three cargoes of liquefied natural gas (LNG) initially allocated for export to Singapore have been reallocated domestically to ensure national energy availability, according to SKK Migas head Djoko Siswanto on Wednesday, 9 April. He said the move was taken due to a domestic gas supply crisis amid increasing demand.
This decision is part of the export LNG reallocation policy implemented by the government through the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas).
“We have decided to divert three cargoes previously destined for Singapore to domestic destinations. We are maximising the supply from Natuna,” said Djoko Siswanto.
Beyond the cargoes previously destined for Singapore, the government has also secured five LNG cargoes from domestic plants—namely Tangguh, Bontang, and Donggi Senoro—that were originally scheduled for export.
Djoko revealed that the entire volume has now been diverted to fulfil the needs of two major domestic consumers: PT PLN (Persero) and PT Perusahaan Gas Negara Tbk (PGN).
“For April and May, Alhamdulillah, it is safe. The five cargoes are from Tangguh, Bontang, and Donggi Senoro. PLN and PGN have also signed, although they have to buy at a slightly higher price,” he said.
The price of LNG allocated to the country is not as cheap as the regular supply. The government sets the price at 17.4 per cent of ICP (Indonesian Crude Price), higher than the previous average domestic gas price.
With this reallocation strategy, Djoko ensures that gas supply for domestic needs is secure until June 2025. The government will not rush to open import options, but will continue to monitor and evaluate conditions every three months.
“In the second quarter, God willing, it is safe. In the third and fourth quarters, we will see whether we need additional import supplies. We evaluate every three months,” he said.
This move also shows that the government prioritises domestic needs over maintaining export quotas, especially amid global energy production and demand uncertainty.
Domestic gas production remains a major challenge. While demand from the power and industrial sectors is increasing, a sudden increase in gas output is not feasible. The government has had to pivot its strategy with flexibility in export allocations and contract adjustments.
The reallocation of LNG previously scheduled for Singapore shows that the government prioritises domestic energy security over short-term commercial export interests.” (Hartatik)
Banner photo: Arun LNG Terminal (Source: PGN)
