Dart Energy Limited Singapore (Head Office) 152 Beach Road, #19-01/04 The Gateway East Singapore 189721
Indonesia's gas market overview
Indonesia has Asia's third largest population with domestic oil and gas demand growing strongly but declining production. In areas of high population density, especially the island of Java, there is a growing energy supply-demand imbalance . In other areas, significant gas intensive industries exist, such as the Bontang LNG plant in Kalimantan, which is amongst the world's largest LNG production facilities. The Bontang LNG plant is currently operating significantly below capacity due to shortfalls of gas feedstock. The estimated gas shortfall in Indonesia is c.900 mmscf/day. Accordingly, Dart believes that Indonesia has a significant and growing market for natural gas, including CBM. A specific plan needs to be developed for each Indonesian "sub-market", given that Indonesia is geographically comprised of many islands, and each has unique gas demand, supply and infrastructure considerations. Indonesia has vast coal deposits and there are many areas with potentially large gas and CBM reserves, scattered across the entire Indonesian archipelago. Gas supply prices in Indonesia have increased sharply over the last few years but still remain at levels about one third that of oil-price equivalent.
CBM overview
Indonesia is considered to be one of the most CBM resource rich countries in Asia. Estimates of resource vary, although a government estimate of 453 Tcf is often quoted. Dart Energy has focused its activities in Indonesia in two regions - South Sumatra and Kalimantan - which Dart Energy considers to represent the best prospects for establishing a successful CBM business in Indonesia. These two regions are estimated to account for 60% of Indonesia's CBM resources. They also have developed gas infrastructure and established local and export gas markets and are, for different reasons, experiencing gas supply-demand imbalances South Sumatra is proximate to Java, the main population centre of Indonesia (over 120 million people), which is energy and gas short. Pipeline infrastructure already exists to transport gas from South Sumatra to this market. East Kalimantan is short of gas. In particular, the Bontang LNG plant is operating well below capacity due to declining conventional gas supply. Kalimantan has highly developed coal infrastructure as well as pipeline infrastructure, primarily servicing the Bontang LNG plant.
Indonesia has Asia's third largest population with domestic oil and gas demand growing strongly but declining production. In areas of high population density, especially the island of Java, there is a growing energy supply-demand imbalance . In other areas, significant gas intensive industries exist, such as the Bontang LNG plant in Kalimantan, which is amongst the world's largest LNG production facilities. The Bontang LNG plant is currently operating significantly below capacity due to shortfalls of gas feedstock. The estimated gas shortfall in Indonesia is c.900 mmscf/day. Accordingly, Dart believes that Indonesia has a significant and growing market for natural gas, including CBM. A specific plan needs to be developed for each Indonesian "sub-market", given that Indonesia is geographically comprised of many islands, and each has unique gas demand, supply and infrastructure considerations. Indonesia has vast coal deposits and there are many areas with potentially large gas and CBM reserves, scattered across the entire Indonesian archipelago. Gas supply prices in Indonesia have increased sharply over the last few years but still remain at levels about one third that of oil-price equivalent. 
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