Indonesia needs to invest $70 billion to $80 billion in gas infrastructure through 2030 to avoid 

a  potential  gas  shortage, as  domestic  consumption  growth  outpaces supply, state-owned 

energy business Pertamina said Tuesday. 

An expanding economy and growing middle  class are the key drivers of energy consumption, 

which continues to grow by around 4-5% a year. 

Natural gas accounts for approximately 15% of  the country's energy needs, and its growth is 

primarily  supported  by  expanding  demand  from the power, refinery, fertilizer and transport 

sectors. 

"Indonesia needs new investment to explore and develop new gas resources and to build gas 

infrastructure," said Yenni Andayani, chairman of Indonesia Gas Society and acting president 

director of Pertamina. 

"Gas        infrastructure      investment       requires     coordination    with    all   stakeholders, 

incentives,  competitive   prices   and   a   good  domestic investment climate," he said, at the 

opening of the International Indonesia Gas Conference and Exhibition 2017. 

Indonesia is a major LNG supplier, with Bontang, Tangguh and Donggi Senoro LNG facilities 

having produced a total of 18.83 million mt of LNG in 2016, up by 4.3% from  the 8.05 million 

mt produced in 2015, according to Platts Analytics. 

Of  the  total, 3.016  million  mt  was  delivered  to  one of Indonesia's three import terminals 

supplying the highly populated centers of Java and Sumatra, up by more than 30% from 2.2

81 million mt received in 2015. 

At current gas demand growth rates, there could be a supply gap of 27.9 Bcm by 2025, the 

equivalent of more than 20 million mt of LNG, Platts has previously reported. 

The country, which has not yet imported LNG from the international markets, is to import 1.5

2 million mt/year from 2019, as part of a 20-year contract between Pertamina and Houston-

based Cheniere Energy. 

Indonesia's proven reserves stand at 3.7 billion barrels of oil and 101.54 Tcf of gas. 

Crude  oil  production peaked at 1.6 million b/d in 1995 and has since been declining, owing 

to  ageing fields and  limited investor interest due to the country's complex bureaucracy and 

contract system. Indonesia produced 831,000 b/d in 2016.

Gas production is expected to rise to 9.35 Bcf/d over the next few years from 8 Bcf/d current

ly, but growth in demand is expected to outpace supply.