BALI, July 6: Indonesia is looking to the Philippines, China and the United States to market its liquefied natural gas (LNG) as part of a more aggressive sales pitch for its bulging reserves, Energy Minister Purnomo Yusgiantoro said on Saturday.

Speaking to delegates at the third annual Indonesian International Oil, Gas and Energy Conference and Exhibition (IIOGE) on the resort island of Bali, Purnomo said the dynamics of the LNG market were also shifting and Indonesia could no longer afford to rely on its traditional markets.

What is happening in today’s LNG market? It’s a buyers’ market because the growth of LNG supply is higher than the growth of demand, Purnomo told delegates.

He said Indonesia was keen to tap into emerging markets in mainland China and the Philippines and cash in on the west coast of the United States where supplies were running thin.

The US has supply from two sources: Canada and the Gulf of Mexico. We know those sources are depleting and the price of gas in the US is climbing now.

Indonesia’s traditional LNG markets are Japan, South Korea and Taiwan where it is committed to exporting more than 22 million tonnes of LNG annually.

Indonesia, Asia’s only Opec member, relies heavily on LNG exports to support its economy and for much needed foreign exchange.

Purnomo also said Indonesia was looking to build additional LNG plants to have more flexibility.

It currently has two plants, including one in Arun in the rebellious northern province of Aceh. That plant was forced to close for several months last year due to security problems.

Aceh is one of two separatist hotspots in Indonesia and rebels there have been fighting for independence for decades.

I would like to see Indonesia add...two other LNG centre points...I dream of that, Purnomo said.—Reuters