Natural Gas Business in Indonesia
3Natural Gas Business in Indonesia
Introduction
Gas is an energy future of Indonesia. It is a fact that cannot be denied anymore. Based on existing data, throughout 2010 there were new discoveries of gas reserves are significant enough to achieve 2.09 trillion cubic feet, while the discovery of oil only amounted to 140 million barrels only. On January 1, 2011, proved reserves position and potential of gas in Indonesia reached 153.72 trillion cubic feet of proven and potential reserves and crude oil for 7.41 billion Barrels. (BPMIGAS Bulletin Issue, 2011)
If the reserves are produced with current production levels then the Indonesia's oil reserves will run out for 12 years, while Indonesia's natural gas reserves are still able to survive to meet the needs of up to 46 years. (BPMIGAS Bulletin issue 73: August 2011)
Figure below showed Natural Gas Reserve in Indonesia (Eddy Hermantoro, 2010)
Figure 1. Indonesia Gas Reserves
Natural gas is usually found deep below the earth’s surface and is made up of hydrocarbon gas primarily methane (CH4). It is found in oil and gas field and coal mining area (Annual Report PGN, 2010). Natural gas can be used as fuel either fuel for industry, vehicles, housing, power plants and even as raw material for petrochemical products. Figure 2. Natural Gas Composition
Compared to oil-based fuels and coal, natural gas has several advantages, namely: 1. Environmental Friendly
Natural gas burns more cleanly, releasing fewer (CO2) emissions into the atmosphere. Using natural gas can therefore help to reduce greenhouse gases and global warming Figure 3. Fossil Fuel Emission 2. Economically efficient energy
Natural gas has excellent economic value. Apart from being an environmentally friendly fuel source, it is cheaper and has greater price stability than oil-based fuels. Comparison of natural gas price and petroleum products can be shown at
Introduction
Gas is an energy future of Indonesia. It is a fact that cannot be denied anymore. Based on existing data, throughout 2010 there were new discoveries of gas reserves are significant enough to achieve 2.09 trillion cubic feet, while the discovery of oil only amounted to 140 million barrels only. On January 1, 2011, proved reserves position and potential of gas in Indonesia reached 153.72 trillion cubic feet of proven and potential reserves and crude oil for 7.41 billion Barrels. (BPMIGAS Bulletin Issue, 2011)
If the reserves are produced with current production levels then the Indonesia's oil reserves will run out for 12 years, while Indonesia's natural gas reserves are still able to survive to meet the needs of up to 46 years. (BPMIGAS Bulletin issue 73: August 2011)
Figure below showed Natural Gas Reserve in Indonesia (Eddy Hermantoro, 2010)
Figure 1. Indonesia Gas Reserves
Natural gas is usually found deep below the earth’s surface and is made up of hydrocarbon gas primarily methane (CH4). It is found in oil and gas field and coal mining area (Annual Report PGN, 2010). Natural gas can be used as fuel either fuel for industry, vehicles, housing, power plants and even as raw material for petrochemical products. Figure 2. Natural Gas Composition
Compared to oil-based fuels and coal, natural gas has several advantages, namely: 1. Environmental Friendly
Natural gas burns more cleanly, releasing fewer (CO2) emissions into the atmosphere. Using natural gas can therefore help to reduce greenhouse gases and global warming Figure 3. Fossil Fuel Emission 2. Economically efficient energy
Natural gas has excellent economic value. Apart from being an environmentally friendly fuel source, it is cheaper and has greater price stability than oil-based fuels. Comparison of natural gas price and petroleum products can be shown at