Indonesia's Gas Troubles Continue

摘要

Indonesia's status as a major and reliable source of LNG is in decline. Although die country started liquefaction in 1977, production peaked at 28.9 million tons in 1999 and has never recovered.And although LNG represents a significant portion of the Indonesian economy, about 3% of GDP, management of the sector by the government has been weak, according to the U.S. Embassy in Jakarta. In addition to extreme governmental bureaucracy, heavy pressure exerted by the government on the domestic gas industry to provide feedstock for Indonesia's fertilizer industry constrains developers by restricting full export capacity.