Infrastructure is the most significant challenge to gas production in Indonesia as the bulk of the country’s gas resources is located on the outer islands, far from demand centres in the island of Java. [...] The pricing of LNG in South and Southeast Asia is mainly driven by both the Japan Crude Cocktail (JCC) price and the "slope" used to link the LNG price to the oil market price. [...] It is understood that the higher the crude oil price in the international market, the more attractive the LNG price will be as long as the product 2 To attract investors to an LNG project, the price of a unit volume of natural gas delivered into a bulk distribution pipeline must at least equal the combined costs of producing, liquefying, transporting, storing, and regasifying, plus the costs of th. [...] Model Description and Major Assumptions What then is the future investment demand in the energy sector of the region (including the ASEAN), and of India? Following the principles of market integration, it is assumed that more energy sector cooperation between the sub-regions of South and Southeast Asia (mainly India) will enhance the level of energy trade. [...] In the ASEAN region, majority of the investment is expected to be in the electricity sector, followed by the gas sector.
Authors
- Pages
- 56
- Published in
- Indonesia
