Indonesia will consider new limits on exports of liquefied natural gas, a potential extension of trade curbs that’ve previously disrupted nickel to coal and palm oil markets.

The nation wants to ensure adequate domestic gas supply and aims to balance local consumption and export commitments, according to Jodi Mahardi, Indonesia’s deputy coordinating minister for maritime sovereignty and energy.

“We believe that this policy will have a positive impact in meeting domestic energy needs, encouraging domestic industry growth, and maintaining existing export commitments,” Mahardi said. Planned policies do “not intend to reduce or stop gas exports as a whole,” he said.

Indonesia was the world’s sixth-largest LNG exporter last year, according to ship-tracking data. The country has been moving to prioritize gas volumes for its domestic market to help feed economic growth and after supply chain snarls combined with a post-pandemic industrial rebound last year to trigger a global squeeze on fuel supplies.

New LNG export contracts or renewals of existing agreements could be prohibited to prioritize the needs of domestic consumers, Coordinating Investment and Maritime Affairs Minister Luhut Pandjaitan told a media briefing Tuesday, the Jakarta Post reported.

Existing contracts wouldn’t be impacted and a report is being prepared for President Joko Widodo, Luhut was cited as saying. The minister has recently also questioned plans to export electricity to Singapore.

Roughly 10 million tons per year worth of LNG contracts with Indonesian suppliers are set to expire through 2030, according to data compiled by Bloomberg. That represents roughly half of the nation’s export capacity.

Indonesia is expanding gas output, which should satisfy local demand and provide additional volumes for exports, Dwi Soetjipto, head of the nation’s upstream oil and gas regulator SKK Migas, said Wednesday.

--With assistance from Ann Koh.

Author: Norman Harsono, Eko Listiyorini and Stephen Stapczynski