ASIATODAY.ID, JAKARTA – The global oil and gas industry is undergoing a significant transformation. Recent research by Goldman Sachs projects the global gas market to expand by 50% over the next five years. This is a staggering increase with major implications for the Asia Pacific region, which is expected to lead the world in gas demand growth.
According to the International Energy Agency (IEA), Asia was the primary driver of global gas demand growth in the first half of 2024. From January to June, the region accounted for nearly 65% of the world’s increased gas consumption, driven largely by the economic expansion of its fast-growing markets.
Natural gas has emerged as a critical transition fuel in the global shift toward cleaner energy. With rising demand and declining domestic supplies, Southeast Asian countries are now positioning themselves as net gas importers, aiming to enhance their energy security.
Rising Demand in Indonesia and Singapore
Indonesia, one of the world’s top ten economies by purchasing power parity, is witnessing rapid growth. Its GDP has been expanding at an average rate of around 5% annually, and the country holds a strong position in the global mining industry. As the fourth most populous nation, Indonesia requires aUordable and secure energy sources to support its development. To this end, the country has set an ambitious goal of doubling its gas production by 2030. Indonesia boasts substantial exploratory potential, particularly in ofshore regions such as Aceh, which hold promising prospects in both shallow and deep-water basins.
For Conrad Asia Energy, Indonesia represents a crucial market. Thec ompany has a portfolio with several proven gas discoveries and is working to bring them to market. Among its recent achievements, Conrad has signed two binding Gas Sales Agreements (GSAs) for its Mako gas discovery in the West Natuna Sea, as well as a Memorandum of Understanding (MOU) with PT Perusahaan Gas Negara Tbk (PGN) to develop gas fields oU the coast of Aceh. In June 2024, Conrad secured a binding GSA with PGN for gas purchases from the Mako field, the largest undeveloped gas field in the West Natuna Sea.
This progress was further underscored in September, when Conrad signed another binding GSA with Sembcorp Gas, a subsidiary of Sembcorp Industries, to export natural gas from the Mako field. This agreement marks a key milestone in the commercialisation of the Mako field and highlights the strategic importance of the Southeast Asian market to Conrad’s growth.
Singapore’s Transition to Natural Gas
Over the past 20 years, Singapore has made a significant shift from oil-fired power generation to electricity primarily powered by natural gas. Looking ahead, the government has laid out plans to transition further towards renewable and low-carbon energy sources over the next 30 to 40 years.
Currently, about 95% of Singapore’s electricity is generated from natural gas, sourced through both liquefied natural gas (LNG) imports and pipeline gas. The latter oUers greater energy security and a lower carbon footprint since it eliminates the need for energy-intensive liquefaction and transport processes. Singapore’s shift to natural gas has enabled the country to reduce its carbon emissions significantly. According to the Singapore government’s “Powering Lives” initiative, natural gas will “continue to be a dominant fuel for Singapore in the near future” as it gradually diversifies its energy mix. (AT Network)
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