Friday August 11, 2006

Indonesia's LNG supremacy wanes as Chevron's fields run short

peakoil.com -> bloomberg.com :

Indonesia may lose its dominance of the world's liquefied natural gas market because fields operated by producers such as Chevron are running out of gas faster than expected. Chevron, which supplies gas to the world's largest liquefaction plant on the Indonesian part of Borneo Island, told Indonesia's government on July 17 there isn't enough gas to meet commitments to customers in Japan, South Korea and Taiwan. Indonesia's LNG sales will fall 19% this year.

Indonesia, the world's top LNG supplier for three decades, is failing to find new supplies of gas just as prices and demand for the cleaner-burning fuel have surged to records. Indonesia started exporting LNG in 1977. It shipped 23 million tons in 2005, more than Malaysia's 20.8 million or Qatar's 19.8 million. Indonesia will probably fall to third place next year.

Japan buys 40% of the world's LNG and depends on Indonesia for a quarter of its LNG imports. The gas is part of a strategy to reduce the country's reliance on Middle East oil. A contract to supply 12 million metric tons a year to Japan may not be renewed when it expires in 2010 because gas production are being earmarked for delivery to Java by pipeline, Energy Minister Purnomo Yusgiantoro said in February.

- Two of these Indonesian gas pipelines lead to Singapore. The Indonesian depletion situation is getting quite serious. First they are terminating LPG exports, now they are reducing LNG exports. How long before they are unable to supply the piped gas that powers Singapore's electricity?

For now gov.sg has decided we will import LNG (from Qatar, most probably). But I think Singapore's got to go nuclear. And wind, and solar, and ocean thermal/tidal, maybe even geothermal. A nuclear power plant at the edge of Tuas, wind turbines and nano-solar paint on HDB flats, thin-film translucent solar cells on skyscraper windows, offshore wind farms. Things like that. Well, it's either we really diversify our energy sources (LNG isn't much of a diversification) - or go back to the dark ages, and live in "interesting times".

See also :

1. Indonesia likely to terminate gas exports
2. Indonesia crude oil output falls to 35-year low
3. Singapore to build first LNG terminal to diversify energy sources

(2006-08-11 13:59:29 SGT) [Energy] Permalink

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