Indonesia's Gas Transportation Needs Contract 2016-2030

Gas demand for the transportation sector is projected to increase year on year. Over the next 15 years, gas demand for the transportation sector is expected to surge by 1,757 percent, reaching 1,300 Million Standard Cubic Feet per Day (MMSCFD) in 2030 from 70 MMSCFD in 2016.

This increase is in line with the government's efforts to promote the use of cheaper and more environmentally friendly natural gas. Data from the Ministry of Energy and Mineral Resources (ESDM) projects that gas demand will continue to rise from 2016, 2017, to 2021, reaching 750 MMSCFD. Demand will further increase to 1,300 MMSCFD from 2026 to 2030.

The Ministry of ESDM's 2015-2019 Long-Term Development Plan (Renstra) outlines several strategies to improve access to and infrastructure for natural gas energy for transportation and households. These steps include providing 58 MMSCFD of gas for transportation in 2019 and a plan to build 118 Compressed Natural Gas (CNG) fueling stations (SPBG) during the 2015-2019 period. Ten of these stations will be funded by the State Budget (APBN), while the remainder will be funded by State-Owned Enterprises (BUMN).