Indonesia faces LNG glut as coal remains king

Indonesia is planning a large expansion of its coal-fired generation capacity, which could leave it oversupplied with LNG Indonesia is planning a large expansion of its coal-fired generation capacity, which could leave it oversupplied with LNG.
By Damon Evans 28 November 2017 0 28580
Tangguh LNg plant in indonesia Indonesia’s Tangguh LNG plant. (BP plc)

Indonesia’s spiralling demand for coal will stifle gas demand, leaving the country with a hefty surplus of LNG, a senior analyst has said.

The dominance of coal in Indonesia’s electricity generation will eventually slow gas demand growth, Edi Saputra, an Indonesia gas specialist at Wood Mackenzie, told Interfax Natural Gas Daily.

Saputra said state-owned Perusahaan Listrik Negara (PLN) would still rely on coal as the cheapest source of energy for its baseload power plants, while gas-fuelled facilities would be used only to meet peak demand....

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