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

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".

Post a Comment:

Comments are closed for this entry.

« BP's Prudhoe Bay a... | Main | Dwindling oil reserv... »

Most popular blog postings on lowem.log :

1. Singapore MRT rail network length to double by 2020
2. 2010 Nissan Leaf electric car specifications : 107hp, 24KWh lithium-ion batteries, 100-mile range
3. Live spot gold price quotes chart on COMEX
4. 2010 Toyota Prius specifications released : 50 mpg, 1.8L, 134hp, Ni-MH, solar roof option
5. AVG Anti-Virus Free Edition 2011 direct download link
6. Real-time live gold and silver price quotes chart on COMEX
7. Singapore electric vehicles : Government agencies EMA and LTA to study EV introduction
8. Book review : Shut Down by William Flynn

Featured articles on lowem.log :

1. Book review : Shut Down by William Flynn
2. Singapore electric cars testing starts with 9 electric vehicles
3. Honda, GS Yuasa JV to make lithium-ion batteries for 2010/2011 Honda Civic Hybrid
4. 2010 Honda Civic Hybrid preliminary specifications released
5. 2010 Honda CR-Z hybrid, 2010 Honda Fit/Jazz hybrid models confirmed
6. 2010 Toyota Prius specifications released : 50 mpg, 1.8L, 134hp, Ni-MH, solar roof option
7. NYMEX crude oil recovers from $32.40 low after 2.2 mbpd OPEC production cut announced
8. Singapore : Nuclear power not ruled out