Indonesia Faces LNG Shortfall, Seeks to Defer Exports to 2026

Indonesia is short about 20 LNG cargoes this year as rising domestic demand strains supply. The country plans to postpone some export obligations to 2026, according to Energy Minister Bahlil Lahadalia.

(Reuters) — Indonesia is facing a shortage of about 20 cargoes of liquefied natural gas this year due to higher than expected domestic demand and is seeking to delay some exports until 2026, its energy minister said on Nov. 11.

Bahlil Lahadalia told lawmakers the shortage was due to a miscalculation of demand expectations.

"We plan to delay some of our exports obligations to 2026," he told a parliamentary hearing.

Indonesia's upstream oil and gas regulator SKK Migas estimated in July that Indonesia would export 150 cargoes this year, but flagged risks of cargoes being diverted to domestic buyers due to rising demand from the state utility company.

In April and May, five LNG cargoes intended for export were diverted to domestic buyers. It was unclear whether those cargoes were included in the 20 cargoes shortage estimation this year.