CEO Panel Discussion
27 January 2015
Domestic gas demand is growing at around 4 percent per year while domestic gas supply is insufficient to meet the demand for energy. 75 percent of Indonesia’s potential gas resources are located offshore in the eastern Indonesian region, which require higher levels of technological capability, human resources and more capital, while the risks are much higher than those in previous projects in western Indonesia. Meanwhile, reserves of shale gas and CBM are estimated to be 574 tcf and 453 tcf respectively, compared to conventional gas, which stands at 104 trillion standard cubic feet (tscf) in proven and 48 tscf in potential gas reserves.
There is a dire need to incentivize development of gas reserves and supporting gas infrastructure and accelerate the approval of mega oil and gas projects to minimize the future oil and gas demand and supply gap. The government must also commit to the development of local gas infrastructure and other necessary retailing facilities, such as gas refueling stations to support the gas conversion policy.
Participants will discuss immediate steps that must be taken by the Government to reverse Indonesia’s path to becoming a gas importer and the crucial collaboration required among stakeholders to increase gas production and utilization.
Azam Mohammad, Partner, McKinsey & Co*
- 1. Jean-Marie Gillermou, President & CEO, TOTALE&P Asia Pacific
- 2. Chuck Taylor, President, Chevron Indonesian Company
- 3. Christina Verchere, President, BP Asia Pacific Region
- 4. Marc den Hartog, President, Shell Upstream Indonesia
- 5. Jon M. Gibbs, President & General Manager, ExxonMobil Indonesia
- 6. Syamsu Alam, Upstream Director, PT PERTAMINA (Persero)*
*) To be confirmed