Tangguh. A New Centre of Indonesian LNG (eBook)

Published Date

January 1998

Tangguh. A New Centre of Indonesian LNG (eBook)

(Excludes any applicable taxes)

This paper describes the background to the development and the importance of the commercialisation of the Tangguh gas field (6pp)

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For more than two decades, the Indonesian LNG industry has relied upon the gas fields of North Sumatra and East Kalimantan. Although these gas fields are still the backbone for Indonesian LNG industry, they are now coming to their mature stage. Indonesia will definitely need to develop other gas reserves to maintain its leadership in the LNG industry. The Tangguh gas field, with more than 20 TCP of gas identified to date, gives Indonesia the additional resources it needs at a very critical time hi its history to maintain its supply position in Asia-Pacific LNG trade.

When Indonesia entered the LNG business more than 20 years ago, there were only a handful of competitors for the Asia Pacific market. Nowadays, the Asia Pacific market is contested by an ever-growing number of gas producers from the Asia Pacific region as well as from the Middle East. Consequently, the markets have become highly competitive. The Asia-Pacific market for LNG currently totals some 65 MMTPA (millions metric tons per annum). Indonesia supplies 27 MMTPA or 42 percent of the market volume. Even with today's economic difficulties, the market is projected to increase to over 100 MMTPA by the year 2010. Without Tangguh, Indonesia could only meet 15 to 20 percent of the region's demand by the year 2010. Tangguh is envisioned to have six LNG trains operating by 2010. This will enable Indonesia to maintain its share of the regional LNG market at around 40 percent. Clearly, developing Tangguh is an objective that is important to Indonesia's long term LNG position in the region. Therefore, securing the market to implement Tangguh is PERTAMINA's highest priority.

Paper Delivered by:
Sjahrial Daud
Leon Codron

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Title: Tangguh. A New Centre of Indonesian LNG (eBook)
Product Code: 4433G148
Published Date: January 1998

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