Indonesia may face domestic gas shortages by 2033 due to declining production and underdeveloped resources, according to Wood Mackenzie. While gas demand is expected to remain stable, a lack of timely investment and policy clarity could force the country to rely on costly LNG imports or coal. Indonesia holds significant untapped gas reserves, but developing them requires around $50 billion and stronger regulatory, pricing, and investment frameworks. Experts urge swift action to avoid a gas crisis and maintain Indonesia’s role as a key regional gas supplier. They write:
Wood Mackenzie’s analysis shows that Indonesia’s gas demand, including contracted exports, is expected to remain stable at around 6 billion cubic feet per day until 2035. But Indonesia could face a gas deficit by 2033 without the development of new supply. In this case, Indonesia will become more dependent on higher-cost LNG imports. Alternatively, it could bolster support for low-cost coal, which competes against gas in the power sector despite its emissions disadvantage. However, gas remains a crucial feedstock for industrial use. […]
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