GlobalData expects 36 upstream projects to start operations in Indonesia between 2021 and 2025, with natural gas developments making up around two-thirds.
Indonesia is expected to see 119 oil and gas projects starting operations across value chain during 2021-2025, GlobalData said in its latest report.
The report reveals that of the 119 projects, upstream projects would be 36, midstream projects 27, refinery 11 and petrochemicals would be the highest with 45 projects.
“Indonesia is heavily focusing on gas projects as part of a plan to double the production by 2030 and become one of the major exporters of gas in the world. It is also investing on petrochemicals projects to meet the growing demand in Southeast Asia,” said Teja Pappoppula, oil & gas analyst at GlobalData.
Some of the notable upstream projects include Unitized Jambaran-Tiung Biru (JTB) and Mako. Unitized Jambaran-Tiung Biru (JTB) is an onshore conventional gas field presently in approval stage and is expected to start operations in 2021. On the other hand, Mako is a shallow water conventional gas field presently in approval stage and is expected to start operations by 2023.
Midstream projects make up around 23% of all oil and gas projects in Indonesia by 2025. Pipeline projects cover the bulk of the upcoming midstream projects with the Dumai–Medan gas pipeline being one of the key projects with a length of 509 km. The project has been approved and is expected to start operations by 2025.
However, Indonesia has struggled to deliver oil and gas projects on time. GlobalData’s timeline might be too optimistic, especially given the latest news that Indonesia’s first quarter production targets have disappointed.
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